Chevron News - 2006

News summaries from company press releases and from unaffiliated news agencies are provided below. The summaries are sorted by month and are further categorized as upstream news, downstream news, and business/finance news.

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January

• Upstream news:

- Big Foot Prospect located in Walker Ridge Block 29. The block is approximately 225 miles south of New Orleans. Big Foot #2 discovery well located in approximately 5,000 feet of water, drilled to a total depth of 25,127 feet. The well encountered as much as 300 feet or more of net oil pay. Further appraisal drilling required to determine commercial potential of the discovery.

- Chevron subsidiary Cabinda Gulf Oil Co. Ltd. (CABGOC) commenced oil production from the Belize Field, in deepwater Block 14 offshore Angola. The Benguela, Belize, Lobito and Tomboco fields form the BBLT Development located approximately 50 miles (80 kilometers) offshore in approximately 1,300 feet (396 meters) of water.

- Chevron Australia Pty Ltd awarded exploration rights to offshore block W05-16 in the Carnarvon Basin in Australia. The block, in the highly prospective Greater Gorgon Area, is located off the northwest coast of Australia. Chevron will operate block and hold a 50 percent interest. Shell Development Australia and ExxonMobil each will hold a 25 percent interest in block. W05-16 permit area covers 1,020 square miles (2,650 square kilometers) and lies approximately 60 miles (100 km) northwest of Barrow Island.

• Downstream news:

- General Motors, the state of California, Chevron Technology Ventures, and Pacific Ethanol to learn more about consumer awareness and acceptance of E85 as a motor vehicle fuel by demonstrating its use in GM's flexible-fuel vehicles. The ethanol project is designed to explore the merits of E85 to help meet that goal, and its potential to meet and exceed California's high standards for fuel quality and environmental emissions.

- Exxon Mobil, Royal Dutch/Shell, Chevron and Sasol expect to invest more than $14 million over next five to seven years in joint ventures in Qatar on obscure method to convert natural gas into clean-burning diesel fuel.

- Chevron announced that Patricia Woertz, executive vice president Downstream, has elected to retire. Effective March 1, 2006, Woertz to be succeeded by Mike Wirth, currently president of Global Supply and Trading.

• Business/Finance news:

- Board of Directors declared a quarterly dividend of 45 cents per share, payable March 10, 2006, to stockholders of record as of February 16, 2006.

- Chevron reported quarterly net income of $4.1 billion ($1.86 per share – diluted) in the fourth quarter 2005, compared with $3.4 billion ($1.63 per share – diluted) in the year-ago period. Earnings in the 2004 period included a special-item gain of $146 million ($0.06 per share) related to asset sales. Net income in 2005 was $14.1 billion ($6.54 per share – diluted). Sales and other operating revenues in fourth quarter were $53 billion. For the full year 2005, revenues were $194 billion, compared with $151 billion in 2004. Increase in both comparative periods due mainly to higher prices for crude oil, natural gas and refined products, as well as inclusion of revenues related to former-Unocal operations for the last five months of 2005.

February

• Upstream news:

• Downstream news:

- Chevron Products Co., the U.S. Coast Guard, the U.S. Environmental Protection Agency, and the New Jersey Department of Environmental Protection (NJDEP) are responding to a crude oil spill in the Arthur Kill. Initial estimate of the spill is approximately 31,000 gallons. More than 80 personnel from Chevron, Clean Harbors Cooperative, Atlantic Response, and Marine Spill Response Corporation are working to contain and clean up the spill. The cause of the spill is under investigation. Chevron is cooperating with regulatory agencies to determine the cause. Chevron currently has approximately 8,000 feet of containment boom deployed, and 13 vessels are responding to the incident, including three vessels that are recovering oil from the Arthur Kill. So far, approximately 16,000 gallons of oil-water mixture have been recovered. Responders have marshaled three vacuum trucks and other equipment for the response effort. The U.S. Coast Guard has set up a safety zone from the Outer Bridge Crossing to Fresh Kills, Staten Island, to control vessel traffic through the area affected by the spill.

- Unified Incident Command (UIC) comprised of the U.S. Coast Guard (with coordination from the U.S. Environmental Protection Agency), the New Jersey Department of Environmental Protection (NJDEP), the New York City Department of Environmental Protection (NYC DEP), the New York State Department of Environmental Conservation (NYS DEC) and Chevron Products Co. continue to respond to a crude oil spill in the Arthur Kill. Total volume of crude oil spilled is unchanged from the prior estimate of approximately 31,000 gallons. Approximately 119,448 gallons of oil-water mixture recovered and stored. Approximately 477,234 pounds of oil absorbents and other contaminated solids have been removed during the clean-up. Response personnel continue to monitor and maintain cleaned and unimpacted shoreline on both sides of the Arthur Kill. Excavation and clean-up continues at Chevron facility wharf area. The New Jersey Responder, an oil spill response vessel, is no longer needed. Off-loading of the barge that was transporting crude oil at the time of the spill has been completed. The U.S. Coast Guard will allow a tugboat to take the barge from the Chevron facility.

- Street Level column cites blase attitude of residents of Charleston neighborhood in Staten Island, after discovery that 31,000 gallons of crude oil spilled into Arthur Kill as Chevron barge was unloading oil in Perth Amboy, NJ

• Business/Finance news:

- Experts appointed by the Superior Court in Nueva Loja, Ecuador, issued first report from the judicial inspection of an oil-production site of former Petroecuador-Texaco Petroleum Company (Texpet) consortium. All five experts validated the findings of Chevron's technical experts concluding that areas remediated by Texpet pose no significant risk to human health, and that Texpet's remediation of the Sacha-53 site was effective and in accordance with legal standards of the time.

- Chevron announced that it has begun to reoccupy its downtown New Orleans office. 935 Gravier Street, had flooding on the first floor and garage, and minor damage to windows. Chevron plans to restaff the building by late first quarter 2006.

- Chevron announced the completion of a unique hybrid alternative power plant – combining two solar technologies and hydrogen fuel cell generation – and major energy efficiency improvements at two of the largest U.S. Postal Service (USPS) centers in California. Chevron Energy Solutions developed, engineered and constructed the project over the past year. The work involved installing energy-efficient equipment, including new energy management and compressed air systems, lighting retrofits and comprehensive heating, ventilation and air conditioning system upgrades. Chevron Energy Solutions also installed high-efficiency natural gas cooking equipment for the cafeteria as well as a unique hybrid solar/fuel cell power plant composed of a 250-kilowatt Direct FuelCell® that generates electricity from hydrogen produced internally from natural gas; 185 kilowatts of crystalline-silicon solar panels mounted on a PowerLight® parking canopy that tracks the sun; and 100 kilowatts of flexible, amorphous-silicon, roof-mounted UNI-SOLAR® solar panels.

- Raymond I. Wilcox, president of Chevron North America Exploration and Production Co., will retire from the company on March 31, 2006, to become president and chief executive officer of Chevron Phillips Chemical Company LLC, a company owned equally by Chevron and ConocoPhillips. Wilcox will be succeeded by Gary P. Luquette, managing director of the European strategic business unit of Chevron International Exploration and Production Co., effective April 1, 2006.

- A group of energy companies have launched an initiative to help producers independently optimize their oil and gas production. PRODuction xML, or PRODML™, Work Group is seeking the development of commercial software products within a twelve-month work effort that will improve data exchange and work process efficiency in production optimization. PRODML will allow the transfer of production data more easily, saving huge amounts of money across the industry.

- Chevron announced the launch of the "Chevron 5,000,000 Mile Rideshare Challenge," an event that will leverage Web-based technology to match riders with drivers in Greater Washington, D.C., to help alleviate traffic congestion and conserve fuel. The event will conclude with closing ceremonies in the fall, when the overall goal is achieved. The initiative is part of Chevron's partnership with NuRide, Inc. (www.nuride.com), the nation's first incentive-based rideshare network. NuRide's innovative online program lets individuals use NuRide's patent-pending technology to find the ideal partner with whom to share a single ride for work or pleasure.

March

• Upstream news:

- Chevron announced that it has awarded Transocean Inc. a deepwater drilling contract that will prompt the construction of a new state-of-the-art drillship by Transocean dedicated exclusively to Chevron for five years. The companies also have signed multiyear contract extensions for two deepwater drillships currently in use by Chevron totaling approximately $1.7 billion.

- Chevron announced that it has acquired five heavy oil leases in the Athabasca region of northern Alberta comprising approximately 75,000 acres and possess an estimated 7.5 billion barrels of oil in place. Chevron already is a 20 percent joint venture participant in the Athabasca Oil Sands Project (AOSP). AOSP produces approximately 155,000 barrels per day. Opening in 2003, AOSP has produced more than 100 million barrels of bitumen. The new leases are approximately 24 miles south west of AOSP, and the resource has the potential for recovery using Steam Assisted Gravity Drainage (SAGD), a proven in situ technology that uses steam and horizontal drilling to extract the bitumen.

- Chevron’s Cabinda Gulf Oil Co. Ltd. (CABGOC) and its partners today announced successful offshore exploration results for five significant wells drilled in Angola's Block 0. The wells expand and delineate the existing areas of operation in the block. The Sanha SN-BW06 well was drilled in May 2005 and was subsequently completed and flowed at an initial rate of 3,000 barrels of oil per day (bpd). The SN-BW06 well extended the limits of the field by discovering recoverable reserves in an adjacent fault block. Two successful appraisal wells were drilled to establish production in a field originally discovered in 1971. Livuite Field well 132-7X was drilled in April 2005 and began production with an initial flow rate of 4,486 bpd. Well 132-8X was drilled in July 2005 and encountered 94 feet of net pay in the Pinda.

- Chevron Thailand Exploration and Production, Ltd. (CTEP) announced that the company has signed two petroleum exploration concessions, Block G4/48 and Block G9/48 in the Gulf of Thailand.

• Downstream news:

• Business/Finance news:

- Chevron has outlined a five-year plan for sustained growth, updating its progress on an extensive queue of major oil and natural gas development projects, exploration successes, newer technologies to improve refining results and innovations to enhance oil recovery in its existing properties. O'Reilly said in a presentation to security analysts in New York that Chevron has changed dramatically since 1998, with the capacity of producing approximately 2.7 million barrels of oil equivalent per day. Chevron has tripled in size and has become more balanced geographically. In 1998, almost half of Chevron's production was in North America. Today, that is less than 30 percent, with about 25 percent now in Asia Pacific. Chevron forecasts oil and natural gas production to grow more than 3 percent per year over the next five years. Chevron's exploration program has added over 4 billion barrels of resources in the past four years.

- Bay Area fleet of zero-emission fuel cell buses and cars now operated by the Alameda-Contra Costa Transit District (AC Transit), and powered by Chevron Hydrogen, as part of AC Transit's groundbreaking HyRoad hydrogen fuel cell demonstration program.

- Nation's top oil executives called before Congress to defend industry's recent mergers and record profits, in face of public outrage over high oil and gasoline prices. Second time in four months that oil industry faces strong criticism from both Republican and Democratic senators; most of companies represented, including Exxon Mobil, Chevron and ConocoPhillips, participated in wave of mega-mergers of late 1990's and early 2000 that created today's behemoths; Sen Arlen Specter called hearings to examine whether mergers in industry resulted in higher gasoline prices; Royal Dutch Shell president John Hofmeister says oil industry remains highly competitive despite immense size; Sen Dianne Feinstein says degree of competition and amount of market power held by oil companies following mergers raises serious questions; legislation proposed by Specter would permit government to take legal action against OPEC for fixing oil prices; Sen John Cornyn defends industry

- Chevron has appointed Jay Pryor to the position of vice president for business development, reporting to Dave O'Reilly, chairman and chief executive officer. The appointment is effective May 1, 2006. Pryor replaces Sam Laidlaw.

- Chevron said that it has been notified of an unsolicited "mini-tender offer" by TRC Capital Corporation to purchase up to 2 million shares of its common stock, representing approximately 0.09 percent of Chevron's outstanding shares. TRC Capital's offer price of $54.10 per share represents a 3.99 percent discount to the closing price of Chevron's stock on March 14, 2006, the day prior to the date of the offer, and a 6.67 percent discount to today's closing price of $57.97.

April

• Upstream news:

- Chevron Corporation (NYSE: CVX) announced today that its Norwegian subsidiary Chevron Norge AS has successfully bid for the exploration rights in six blocks awarded in the 19th Norwegian Licensing Round. The blocks are located in the Nordkapp East Basin in the Norwegian Barents Sea, approximately 155 miles (250 kilometers) north of the coast of Finnmark, in 800 feet (250 meters) of water. Chevron has received a 40 percent equity interest in the PL 397 license, Blocks 7230/2, 3, 4, 5, 6 and 7231/4. The other partners in the blocks are Statoil ASA (40 percent equity interest and operator) and RWE Dea Norge AS (20 percent equity interest).

- Chevron Vietnam announced that its affiliate has signed a 30-year Production Sharing Contract with Vietnam Oil and Gas Corporation for Block 122 offshore eastern Vietnam. Block 122 covers 6,981 square kilometers in the Phu Khanh basin with water depths between 50 and 2,500 metres.

• Downstream news:

- Chevron announced that it will spend approximately $300 million to purchase five percent of Reliance Petroleum Limited (RPL), a company formed by Reliance Industries Limited (Reliance) to own and operate a new export refinery being constructed in Jamnagar, India. RPL plans to develop a 580,000 barrels per day crude capacity refinery, expected to begin operation in December 2008.

- Chevron and South African petrochemical company Sasol Limited launched an unprecedented challenge to showcase its cleaner, greener GTL (gas-to-liquid) diesel fuel technology.

• Business/Finance news:

- Chevron Canada Limited and its co-venturers - ExxonMobil Canada, Petro-Canada and Norsk Hydro Canada Oil & Gas Inc. announced a decision to suspend negotiations with the Government of Newfoundland and Labrador and demobilize the Hebron project team. Hebron field is located 350 km offshore the province of Newfoundland and Labrador.

- Chevron and the Russian Academy of Sciences (RAS) today announced they have signed a scientific and technological cooperation agreement. Representatives of the two organizations will now form a committee to exchange information of mutual interest and discuss new trends in scientific research and state-of-the-art technologies with a primary focus on those having applied relevance to the oil industry.

- Chevron invested more than $73 million in community initiatives, deployed a global HIV/AIDS policy and became the largest producer of renewable energy among oil and gas companies, according to the company's Corporate Responsibility Report 2005.

- Chevron had a momentous year in which the company achieved record financial results, effectively responded to natural disasters and continued to build a strong foundation for future growth, Chevron Chairman and CEO Dave O'Reilly said at the company's 2006 annual stockholders meeting in Houston, Texas. O'Reilly said the acquisition of Unocal Corporation in 2005 has strengthened Chevron's oil and gas position in key regions around the world and created new opportunities for significant value creation. For the year, the company achieved net income of $14.1 billion and a return on capital employed of 22 percent. The five largest upstream capital projects are Agbami offshore Nigeria, Tahiti in the U.S. Gulf of Mexico, Benguela Belize-Lobito Tomboco offshore Angola, the Tengizchevroil Sour Gas Injection/Second Generation Plant project in Kazakhstan, and the Greater Gorgon Area development offshore Australia. All five projects are essential to bringing on new production and new reserves during the next five years.

- Chevron declared a quarterly dividend of 52 cents per share, an increase of 15.5 percent compared with the previous dividend payment of 45 cents.

- Chevron reported net income of $4 billion ($1.80 per share – diluted) for the first quarter 2006, compared with net income of $2.7 billion ($1.28 per share – diluted) in the year-ago period. Sales and other operating revenues in the first quarter 2006 were $54 billion, up 32 percent from the same period in 2005, mainly as a result of higher prices for crude oil, natural gas and refined products and the inclusion of revenues related to the former Unocal operations acquired in August 2005.

May

• Upstream news:

- Chevron announced that its subsidiary, Chevron Nigeria Deepwater B Limited and its partners have drilled the first oil discovery in Oil Prospecting License (OPL) 214 approximately 70 miles (113 kilometers) offshore Nigeria. The Uge-1 discovery well was drilled in 4,144 feet (1,263 meters) of water to a total depth of 16,831 feet (5,130 meters), encountering more than 300 net feet (100 meters) of oil.

- The Nigeria – Sao Tome & Principe Joint Development Authority, Chevron and its co-venturers Esso Exploration and Production Nigeria-Sao Tome (One) Limited, and Dangote Energy Equity Resources, have encountered hydrocarbons in the Obo-1 exploration well in Block 1 of the Nigeria – Sao Tome and Principe Joint Development Zone. The Obo-1 well logged a cumulative total of at least 150 feet (45 meters) of net hydrocarbon pay in multiple reservoirs and provided important reservoir rock and liquid samples. At this stage, it is premature to determine whether or not Chevron and its co-venturers have made a commercial discovery. The Obo-1 well is located in 1,720 meters of water (5, 640 feet).

• Downstream news:

- Chevron announced it has invested through a subsidiary in a Texas-based company that is building one of the first large-scale biodiesel plants in the United States. The facility will produce 100 million gallons per year of this clean-burning renewable fuel – an amount that would more than double the current production volume of biodiesel in the United States. Chevron Technology Ventures LLC (CTV), has taken an equity position in Galveston Bay Biodiesel LP (GBB). The company is constructing a biodiesel production and distribution facility in Galveston, Texas, scheduled for completion by the end of 2006 and will produce biodiesel from soybeans and other renewable feedstocks.

- Chevron U.S.A. Inc. announced that it has approved the construction of a 55-mile deepwater crude oil pipeline that will connect the Chevron-operated Tahiti project to the existing Amberjack pipeline in the U.S. Gulf of Mexico. Chevron also approved expanding the pipeline from a 20-inch diameter to a 24-inch diameter design that can handle 300,000 barrels of oil per day and accommodate additional discoveries in the Walker Ridge and Green Canyon areas. Chevron expects to spend a total of $3.3 billion in U.S. exploration, development and production projects.

- Chevron announced its participation in China's first imported shipment of liquefied natural gas (LNG). The cargo is being loaded in Karratha, Western Australia, the base of operations for the North West Shelf Venture, and will be en route to China's first LNG receiving terminal at Guangdong in southern China. The North West Shelf Venture is in the process of adding a fifth LNG production train, raising total production to over 16 million metric tons per year, and enjoys strong long term relationships with customers in Japan and Korea. This shipment of 125,000 cubic meters of natural gas marks the start of a 25-year trade relationship between the North West Shelf Venture and Guangdong Dapeng LNG Company Ltd.

- Chevron said it has formed a biofuels business unit to advance technology and pursue commercial opportunities related to the production and distribution of ethanol and biodiesel in the United States. Chevron will officially announce the business unit today in Galveston, Texas, where the company is constructing one of the first large-scale biodiesel plants in the U.S. Participating in the inaugural ceremony will be Senator Kay Bailey Hutchison; Lyda Ann Thomas, mayor of Galveston; Donald Paul, vice president and chief technology officer, Chevron Corporation; and William J. Berger, chairman of the board, Galveston Bay Biodiesel.

• Business/Finance news:

- Union Oil Company of California ("Union Oil"), an indirect wholly owned subsidiary of Chevron announced that it is offering to purchase for cash any and all of its outstanding debt securities (the "Securities"). The Securities are guaranteed by Unocal Corporation, a wholly owned subsidiary of Chevron. The offer commences on Monday, May 8, 2006, and expires at 5:00 p.m.

- Union Oil Company of California ("Union Oil"), an indirect wholly owned subsidiary of Chevron Corporation (NYSE: CVX), announced today the purchase prices to be paid pursuant to its Purchase Offer dated May 8, 2006 (the "Purchase Offer") with respect to all of its outstanding debt securities (the "Securities").

June

• Upstream news:

- Chevron’s investments in Venezuela showing results. The sludge in the glass jar on David Nelson's bookshelf here is thicker than molasses and was once thought worthless. But the Chevron Corporation, whose operations he runs in eastern Venezuela, has spent about $1 billion turning what was once called liquid coal into oil.

- Chevron along with partners Petrobras and Frade Japao Petroleo Limitada (FJPL), a joint vehicle company of INPEX, Sojitz and JOGMEC, announced their commitment to develop the Frade oil field offshore Brazil. The Frade Field is Chevron's first oil field development project in Brazil. It is expected to begin production in late 2008 or early 2009, with production capacity of approximately 100,000 barrels of crude oil per day and estimated peak annual production of 85,000 oil-equivalent barrels per day. The field contains an estimated 200 million to 300 million barrels of recoverable oil and is located in the Campos Basin in a water depth of 3,500 feet, approximately 75 miles offshore the state of Rio de Janeiro.

- Facing angry lawmakers from both political parties, executives from three major oil companies -- Royal Dutch Shell, Chevron and ConocoPhillips -- indicated that they might be willing to give up sizable taxpayer subsidies for drilling in the Gulf of Mexico.

- Chevron announced today that its subsidiary Cabinda Gulf Oil Company Ltd. (CABGOC) commenced oil production from the Lobito Field, in deepwater Block 14, located offshore Angola. The Benguela, Belize, Lobito and Tomboco fields form the BBLT Development, one of Chevron's "Big 5" projects. Chevron announced first oil from the Benguela Belize compliant piled tower in January. First oil from the Lobito-Tomboco subsea project was achieved on June 7, 2006.

• Downstream news:

- The Baku-Tbilisi-Ceyhan (BTC) pipeline today achieved a historic milestone with the delivery of its first cargo of crude oil to world markets. The inaugural shipment of about 600,000 barrels of crude oil was delivered by tanker to Savona, Italy. The crude oil initially will come from the Azeri-Chirag-Gunashli (ACG) field in the Azerbaijani sector of the Caspian Sea and is expected to be joined by other volumes in the future, including production from across the Caspian region. The 1,094-mile (1,762-km) pipeline crosses Azerbaijan, Georgia and Turkey. The $4.5 billion pipeline has a crude oil capacity of 1 million barrels per day and is expected to accommodate the majority of Azerbaijan International Operating Company (AIOC) production. A total of 10 million barrels of crude oil, which came from the ACG field, was required to fill the pipeline.

- Chevron and the Georgia Institute of Technology have formed a strategic research alliance to pursue advanced technology aimed at making cellulosic biofuels and hydrogen viable transportation fuels. Chevron Technology Ventures, a subsidiary of Chevron Corporation, plans to collaborate with Georgia Tech's Strategic Energy Institute and contribute up to $12 million over five years for research into and development of these emerging energy technologies.

- Chevron’s Northwest Swan liquefied natural gas (LNG) vessel offloaded its first cargo of Australian LNG at the newly commissioned Guangdong LNG facility, the first terminal to receive natural gas in its liquefied form in China. The natural gas was produced by the North West Shelf Venture from its fields offshore Western Australia.

• Business/Finance news:

- Western Australian Environmental Protection Authority (EPA) released its bulletin on the Gorgon project's Environment Impact Statement and Environmental Review and Management Plan (EIS/ERMP). While the EPA states that its environmental objectives are unable to be met by the Gorgon project, the EPA bulletin recognizes that the Western Australian government's decision regarding the Gorgon proposal will be based on consideration of social, economic and strategic issues, as well as environmental matters, and has, therefore, provided a draft framework under which the government could proceed with the project.

- Chevron announced the launch of Energy for Learning, an $18 million program to support public school education in 23 Louisiana and Mississippi school districts affected by Hurricanes Katrina and Rita.

July

• Upstream news:

- Chevron North Sea Limited announced the successful production of first oil from its Captain Area C Project located, approximately 68 miles north of Aberdeen, Scotland in the Inner Moray Firth. Oil production from the project is expected to average 9,000 barrels per day over the first year with peak production of approximately 15,000 barrels per day achieved soon after start-up.

- Chevron announced a natural gas find by one of its affiliates at its Chandon-1 exploration well located 160 miles (260 kilometers) offshore north western Australia in permit WA-268-P. The Chandon-1 well sits within the western reaches of the Greater Gorgon development area, and was drilled using the semi-submersible Transocean "Jack Bates" drilling rig in water depths of approximately 3,900 feet (1,200 meters) with total depth of drilling to 10,200 feet (3,100 meters).

- Chevron announced that operations on the sidetrack well at the Big Foot discovery on Walker Ridge 29 have concluded. The block is approximately 225 miles south of New Orleans, La., and is located in approximately 5,000 feet of water. The Big Foot Well No. 2 Sidetrack 3 reached a total vertical depth of 24,434 feet to a location approximately one-half mile north and significantly downdip of the discovery well.

• Downstream news: o Chevron U.S.A. Inc. and USA Petroleum Corp. today jointly announced that the companies have completed negotiations for Chevron's purchase of 122 USA Petroleum retail stations across California. Chevron plans to operate the 122 additional retail gasoline stations and upgrade the sites with new image standards, either under the Chevron or Texaco brand. California currently has about 10,000 retail gasoline service stations, of which roughly 1,500 are currently branded either Chevron or Texaco. o Chevron announced that Reliance Petroleum Ltd. (RPL) has elected Jeet Bindra, president of Chevron Global Refining, to its board of directors effective July 21, 2006. David C. Reeves, president of Chevron Global Supply and Trading, has been named an alternate representative to the RPL board. Chevron announced that it was acquiring a 5 percent stake in RPL, a company formed by Reliance Industries Ltd. (RIL) to own and operate a new 580,000-barrel-per-day export refinery being constructed in Jamnagar, India. The refinery is due to be completed by the end of 2008 and when combined with RIL's existing 650,000-barrel-per-day refinery, stands to become the largest refining complex in the world based on current capacities.

- Chevron announced the successful delivery of first natural gas from the Dolphin Deep development to the Atlantic LNG (ALNG) Train 3 and Train 4 processing facility in Point Fortin, Trinidad. Discovered in 1998, the Dolphin Deep Field is located in Block 5a, about 52 miles off the east coast of Trinidad in the East Coast Marine Area (ECMA). Production from the Dolphin Deep Field is expected to average 220 million cubic feet per day (mmcfd). The Dolphin Deep development consists of two wells with subsea completions tied back to the Dolphin platform. Produced natural gas from the Dolphin platform is transported via a 24-inch, 60-mile pipeline to the onshore Beachfield gas processing facility to ALNG in Point Fortin on the southwest coast of Trinidad via the 47-mile state-owned onshore Cross Island Pipeline.

• Business/Finance news:

- Chevron Overseas Petroleum (Cambodia) Limited (COPCL) announced today that it has signed a Joint Study Agreement (JSA) with the Royal Government of Cambodia. The purpose of the JSA is to understand and expand the base resource of four discoveries made by COPCL in Block A, offshore Cambodia, in 2004 and 2005. As part of the agreement and to fulfill the minimum obligation under the petroleum concessions, COPCL will drill 10 wells, five in 2006 and another five in 2007.

- The Board of Directors of Chevron Corporation on July 26, 2006 declared a quarterly dividend of 52 cents per share. The dividend is payable September 11, 2006, to stockholders of record as of August 18, 2006. Chevron has an unbroken record of annual dividend payment increases of 19 consecutive years.

- Chevron reported net income of $4.4 billion ($1.97 per share – diluted) for the second quarter 2006, compared with $3.7 billion ($1.76 per share – diluted) in the year-ago period. For the first six months of 2006, net income was $8.3 billion ($3.77 per share – diluted), compared with $6.4 billion ($3.04 per share – diluted) in the 2005 first half. Sales and other operating revenues in the second quarter 2006 were $52 billion, up $5 billion from the same period in 2005. The increase was mainly attributable to higher prices for crude oil and refined products and the inclusion of revenues related to the former Unocal operations acquired in August 2005. Partially offsetting these effects in the 2006 period was the impact of an accounting-rule change beginning in the second quarter for certain purchase and sale contracts. Six-month 2006 sales and other operating revenues were $106 billion, up from $88 billion in the 2005 first half.

- Chevron reported that its second-quarter earnings climbed by 18 percent, marking the company's highest profit for any three-month period. But the results paled next to the earnings announced this week by other large oil companies, and Chevron's stock price dropped substantially on a day when American markets otherwise

August

• Upstream news:

- Chevron announced that its Australian subsidiary has successfully bid for the rights to a deepwater exploration permit with gas potential offshore Western Australia. Chevron Australia Pty Ltd will be the operator and will hold a 50 percent interest, and Shell Development (Australia) Pty Ltd will hold the remaining 50 percent interest. Permit area WO5-13 is located 100 miles (160 kilometers) northwest of the Western Australian coast in the Exmouth Plateau region which is the deepwater frontier of the Carnarvon Basin, Australia's premier petroleum basin, which also includes the North West Shelf and the Greater Gorgon Area.

- President Idriss Déby of Chad ordered the American oil company Chevron and Petronas of Malaysia to leave his central African country as of Sunday on grounds of not honoring their tax obligations. “From tomorrow, the representatives of Chevron and Petronas must leave Chad and close their offices,” President Déby said. Chad has decided to create a national oil company, which it said should become a partner in the country’s oil producing consortium, led by the American company Exxon Mobil and including Chevron and Petronas. President. Déby said the government had asked the companies to honor the tax obligations in their contracts, but had received no response.

- Chevron said that it was told by Chad to leave the oil-rich African country over a tax dispute. The company received the demand in a letter as part of a dispute in which Chad President Idriss Deby told Chevron and Malaysia-based Petronas last weekend that they owed $450 million in taxes. Chevron asserts that it is in full compliance with all our tax obligations. Rising oil prices have motivated oil-producing countries around the world to pressure foreign companies for a greater share of profits. Venezuela, the world's fifth-largest oil exporter, said that it would seek a majority stake in the production units of four joint oil ventures as it expands its control over the country's energy industry. Chevron, the second-largest U.S. oil company, holds a 25% stake in the $3.5-billion Chad-Cameroon project, which carries oil from Chad on a 658-mile pipeline through Cameroon for export. Chevron's production stake in the consortium is 37,000 barrels a day. Irving, Texas-based Exxon Mobil Corp., the world's largest publicly traded oil company, operates the project with a 40% stake. Petronas holds 35%. The companies have several days to leave the country. Exxon Mobil hasn't been asked to leave Chad.

- Venezuela sharply raised taxes on four oil projects and a top official predicted enactment of a law giving the government control over all crude production in the South American country. Venezuela’s congress approved a bill that hikes the income tax rate to 50% for six foreign oil companies working in oil ventures in Venezuela's oil-rich Orinoco River basin. The six companies are ConocoPhillips Co., Chevron Corp., Exxon Mobil Corp., Norway's Statoil, France's Total and Britain's BP. Deputy Oil Minister Bernard Mommer said the congress planned to approve by December legislation allowing the state oil company, Petroleos de Venezuela to take a majority stake in those same ventures. The state-owned company currently holds minority stakes in the four Orinoco projects, which extract and upgrade heavy crude. They are the last remaining oil-producing operations in the country not yet under government control. Some oil exploration efforts, however, remain under the control of private companies. The Orinoco projects produce 600,000 barrels of oil a day.

• Downstream news:

• Business/Finance news:

- Chevron announced that the team of Chevron Energy Solutions and Keenan Development will build and operate a $100 million central utility plant to provide secure energy to the National Interagency Biodefense Campus (NIBC) under construction at the United States Army's Fort Detrick in Frederick, Maryland. The plant will be established through the Department of Defense's enhanced-use leasing authority, which allows private companies to develop non-excess military property for mission enhancing and marketable long-term uses. Chevron Energy Solutions is designing, building and operating the plant.

- Chevron announced that it is opening energy technology centers in Aberdeen, Scotland, and Perth, Australia. The two centers will provide research, development and technical services for the company's worldwide operations and are expected to open in early 2007.

September

• Upstream news:

- Chevron announced that it successfully completed a record setting production test on the Jack #2 well at Walker Ridge Block 758 in the U.S. Gulf of Mexico. Jack #2 was completed and tested in 7,000 feet of water, and more than 20,000 feet under the sea floor, breaking Chevron's 2004 Tahiti well test record as the deepest successful well test in the Gulf of Mexico. The Jack #2 well was drilled to a total depth of 28,175 feet.. During the test, Jack #2 sustained a flow rate of more that 6,000 barrels of crude oil per day with the test representing approximately 40 percent of the total net pay. An additional appraisal well is planned in 2007.

- Chevron, Devon Energy and Statoil ASA announced a successful production test in the Gulf of Mexico. The discovery, potentially the largest American oil find in a generation was seen by experts as ushering in a new era in ultra-deepwater offshore drilling.

- Chevron agreed to pay taxes that Chad said the oil company owed to the central African state and would continue to operate in the country, a Chadian spokesman said.

- A tax dispute between Chad and oil companies Chevron Corp. and Petronas has highlighted the potential pitfalls of investing in developing countries. Idriss Deby, president of Chad, looks set to use the dispute to increase his government's share of oil revenue, renegotiate contracts and tap into profits fueled by record oil prices. Deby ordered the expulsion of Chevron and Malaysia's Petronas, short for Petroliam Nasional Berhad, on Aug. 26, accusing them of failing to pay about $450 million in taxes. Initially, government officials insisted that the decision was a tax issue, but Deby recently told supporters in N'Djamena, the capital, that Chad wanted a "reasonable" 60% stake in a consortium involving the two groups that is producing about 170,000 barrels a day. A legal advisor to the president, told Reuters that Chad planned to review all its oil exploration and production contracts. Deby threatened to halt production because of a row with the World Bank and said the government needed greater revenue to tackle rebels in the east of the country. Analysts say his latest decision could be an attempt to play a nationalist card and improve his standing in the face of domestic woes. Exxon Mobil Corp. owns 40% of the $4.2-billion project and manages it, and was not asked to leave and has been paying taxes. Sources close to the situation say Chevron and Petronas have refused to follow suit because of protracted arguments about what taxes they must pay. The consortium's partners negotiated tax agreements with the government on an individual basis, and tax was not part of the World Bank's program to monitor Chad's share of revenue. When the project was initiated, oil prices were between $15 and $20. However, as oil prices rose sharply and the consortium's partners began recouping their initial investment, the possibility emerged that the government could receive more in taxes this year than it does in oil revenue, said a Western official who declined to be named.

• Downstream news:

- Chevron and the University of California, Davis (UC Davis) have formed a strategic research collaboration to pursue advanced technology aimed at converting cellulosic biomass into transportation fuels. The joint research effort will coordinate with the California Biomass Collaborative to focus on renewable feedstocks available in California, including agricultural waste such as rice straw. Chevron Technology Ventures LLC plans to support a broad range of UC Davis scientists and engineers with funding of up to $25 million over five years for research into and development of these emerging energy technologies. The objective of the Chevron-UC Davis research is to develop commercially viable processes for the production of transportation fuels from renewable resources such as new energy crops, forest and agricultural residues, and municipal solid waste.

• Business/Finance news:

- A group of oil companies led by Chevron, which said that they had discovered a huge new oil field in the Gulf of Mexico, could avoid more than $1 billion in royalty payments to the federal government for the oil.

- Shares of Chevron soared this month after the company announced a major oil find in the Gulf of Mexico. Then they lost back the entire gain, and more, over the next few days. Analysts were not surprised by the stock's decline.

- Venezuela's tax agency has billed the local subsidiaries of Chevron and BP a combined $56.6 million, saying the amount represented unpaid income tax for fiscal 2005. Chevron was billed $19.4 million and has 15 days to refile its 2005 taxes as well as pay a fine of 10% of the sum it owes, the agency said. The tax agency said BP owed $37.2 million.

- Chevron and Los Alamos National Laboratory today announced the creation of a joint research project to improve the recovery of hydrocarbons trapped in oil shales and slow-flowing oil formations. The goal of the Chevron-Los Alamos collaboration is to develop an environmentally responsible and commercially viable process to recover crude oil and natural gas from western U.S. oil shales. The joint research and development effort will focus on oil shale formations in the Piceance Basin in Colorado.

October

• Upstream news:

- Chevron Canada Limited has elected to participate in the first phase of expansion of the Athabasca Oil Sands Project (AOSP). This is a 100,000-barrels-per-day (Chevron share, 20,000 bpd) expansion of oil sands mining and upgrading facilities in the Canadian province of Alberta, and is subject to final regulatory approvals. AOSP is a surface mining operation currently producing about 155,000 barrels of bitumen per day. It began operations in April 2003. The total capital cost estimate is $10 billion US, with Chevron's share at $2 billion. This expansion will increase design capacity to more than 255,000 bpd in 2010.

- Chevron announced that it will develop, with project co-owners, the Great White, Tobago and Silvertip fields in the U.S. Gulf of Mexico, approximately 200 miles south of Freeport, Texas. The fields will be produced via the Perdido Regional Development host (a direct vertical access spar tethered to the seabed). Perdido will be the deepest spar production facility in the world, moored in about 8,000 feet of water. First production from Perdido is expected around the turn of the decade, with the facility capable of handling 130,000 barrels of oil-equivalent per day. The concept for regional development of several fields includes a common processing hub in Alaminos Canyon Block 857 near the Great White discovery that incorporates drilling and capabilities to gather, process and export production within a 30-mile radius of the facility.

• Downstream news:

- Power has been restored to Chevron's refinery on Oahu. Crews are currently inspecting all equipment under established Chevron procedures relating to seismic impacts. The refinery will begin the start-up process once the inspections are completed, any corrective or pre-cautionary measures are in place, and it is safe to proceed. Chevron reports no injuries to personnel. Chevron's gasoline terminals and retail stations are now operating and open for business. The refinery has a production capacity of 54,000 bopd.

- Chevron personnel are in the process of restoring operations to the company's 54,000 bpd refinery in Kapolei after crews completed an initial comprehensive inspection of the entire plant and process checks showed no evident damage from an earthquake.

• Business/Finance news:

- Chevron and the U.S. Department of Energy's (DOE) National Renewable Energy Laboratory (NREL), headquartered in Golden, Colo., today announced a strategic research alliance to advance the development of renewable transportation fuels. Researchers from CTV and NREL will collaborate on projects to develop the next generation of process technologies that will convert cellulosic biomass, such as forestry and agricultural wastes, into biofuels such as ethanol and renewable diesel.

- Chevron Energy Solutions (CES) announced that it will conduct preliminary work to prepare a proposal for the development of highly efficient ethanol production plants for Ethanex Energy, Inc., a renewable energy company engaged in low-cost ethanol production. The proposal will include details necessary for CES to negotiate contracts to engineer, procure and construct for Ethanex at least three biofuel plants by 2008. The plants, to be located in Missouri, Illinois and Kansas, will each produce about 132 million gallons of fuel-grade ethanol annually. Ethanol, or ethyl alcohol, is a renewable biofuel produced from the starch and sugar in agricultural crops, primarily domestically-produced corn. Currently, the total production capacity of ethanol facilities in the United States is about 5 billion gallons per year.

- The Board of Directors of Chevron Corporation on October 25, 2006 declared a quarterly dividend of 52 cents per share. The dividend is payable December 11, 2006, to stockholders of record as of November 17, 2006. Chevron has an unbroken record of annual dividend payment increases of 19 consecutive years.

- Chevron Corporation today reported net income of $5.0 billion ($2.29 per share – diluted) for the third quarter 2006, compared with $3.6 billion ($1.64 per share – diluted) in the year-ago period. For the first nine months of 2006, net income was $13.4 billion ($6.06 per share – diluted), compared with $10.0 billion ($4.68 per share – diluted) in the 2005 nine-month period.

- Interior Dept drops claims that Chevron systematically underpaid government for natural gas produced in Gulf of Mexico, decision that could allow other energy companies to avoid paying hundreds of millions of dollars in royalties; decision could make it easier for oil and gas companies to lower value of what they pump each year from federal property and thus their payments to government; Interior officials claim it would be useless to fight Chevron after appeals board ruled against auditors in separate case; but state governments and private landowners have challenged company over essentially same practices and reached settlements in which Chevron paid $70 million in additional royalties; in Chevron case, auditors in Minerals Management Service addressed issue that has bedeviled royalty enforcement for decades: how does government make sure it gets its due when companies sell natural gas to businesses they partly own; case detailed.

November

• Upstream news:

- Chevron announced that its subsidiary Cabinda Gulf Oil Co. Ltd. has commenced crude oil production from the Landana North reservoir in the Tombua-Landana development area. First oil from Tombua-Landana was achieved on June 20, 2006, from the Landana North #1 subsea well that is tied back to the Benguela Belize – Lobito Tomboco (BBLT) compliant piled tower. The Tombua-Landana development, recently approved by the Block 14 contractor group and the government of Angola, will be Chevron's third operated deepwater development offshore Angola. The 46-well project, located 50 miles (80 kilometers) offshore in more than 1,200 feet (369 meters) of water, will employ a compliant piled tower with one subsea center. The projected peak production from the completed development is approximately 100,000 barrels per day by 2010.

- Companies are venturing further out to sea, drilling deeper than ever in their quest for energy as oil consumption grows and access to most oil-rich regions becomes increasingly restricted; next oil frontier and great challenge for oil explorers lies below 10,000 feet of water in Gulf of Mexico, through five miles of hard rock, thick salt and tightly packed sands; it will take another decade and billions of dollars to transform oil from ultra-deep reserves into gasoline; some of technology to pump sludge from these depths, at these pressures and temperatures, has not yet been developed; only about a dozen ships can drill wells that deep, and no one knows for sure how much oil is available; technological breakthroughs have always breathed new life into energy industry; oil companies exploring region include Royal Dutch Shell, BP and Chevron.

- Chevron announced a significant natural gas discovery at its Clio-1 exploration well located 90 miles (150 kilometers) offshore northwestern Australia in permit WA-205-P. The Clio-1 well was completed in September 2006 and was drilled using Transocean's semi-submersible drilling rig Jack Bates in water depths of approximately 3,000 feet (960 meters) with total vertical depth of drilling to 15,500 feet (4725 meters). The well discovered 623 feet (190 meters) of net gas sands in the Mungaroo Formation, which places Clio as one of the top wells in Australia in terms of total net pay.

• Downstream news:

- Chevron U.S.A. Inc. announced it has submitted an environmental permit application to the Mississippi Department of Environmental Quality for the construction of a major gasoline production unit, along with other minor units, at its refinery in Pascagoula, Miss., that could potentially further increase gasoline production at the refinery by roughly 15 percent.

- Chevron U.S.A. Inc. and USA Petroleum Corp. announced the termination of their agreement for the sale of 122 USA Petroleum retail gasoline stations located in California, to Chevron.

- Chevron Corp. said that it called off plans to buy most of the gasoline stations owned by USA Petroleum Corp., which runs California's largest network of independent outlets and is credited with inventing self-service fueling in the 1940s. The two companies offered different reasons for ending the deal they announced in mid-July. Under that agreement, Chevron was to buy 122 of USA Petroleum's 160 gas stations for an undisclosed sum.Stephanie Price, a Chevron spokeswoman, described the breakup as "a business decision" and declined to elaborate. The San Ramon, Calif., company is the state's largest fuel producer and vies with BP's Arco brand to be the top retailer, with 1,200 stations selling gasoline under the Chevron and Texaco brands. Mark Conant, president of Thousand Oaks-based USA Petroleum, said the sale collapsed because of aggressive scrutiny by the Federal Trade Commission, which was reviewing the deal's potential effect on the California gasoline market.

• Business/Finance news:

- Chevron Energy Solutions has completed the largest solar power and energy-efficiency project for the United States Postal Service (USPS) at its mail center in Northern California. The project at the Oakland Processing and Distribution Center reduces the facility's power purchases by more than one-third and is the latest indication that businesses and institutions are installing energy-efficiency measures to reduce costs and help fund on-site renewable power systems.

- Chevron Corp. and ConocoPhillips owe Venezuela 24.2 billion bolivars ($11.3 million) in back income taxes for 2002-2003, the country's tax agency said. The U.S. oil companies owe from their participation in two of the country's four heavy oil ventures, the national tax superintendent said. Chevron owes 8.7 billion bolivars, while ConocoPhillips owes 15.5 billion. The companies have 15 days to respond or face a 10% penalty.

- Chevron Energy Solutions and the City of Millbrae celebrated the completion of new facilities at Millbrae's Water Pollution Control Plant that use a common urban waste – inedible kitchen grease from restaurants – to naturally produce biogas for generating renewable power and heat to treat the city's wastewater. The unique system, engineered and installed by Chevron Energy Solutions, includes a grease receiving station and an expanded cogenerator as well as other upgrades that result in annual revenues and energy savings of $366,000 for Millbrae while nearly doubling the amount of "green power" produced at the plant. More than 3,000 gallons of restaurant grease will be delivered to the plant each day by grease hauling companies, which pay a city fee for disposals. Microorganisms in the plant's digester tanks eat the grease and other organic matter, naturally producing methane gas to fuel the plant's new 250-kilowatt microturbine cogenerator to produce electricity for wastewater treatment. Meanwhile, excess heat produced by the cogenerator warms the digester tanks to their optimum temperature for methane production.

December

• Upstream news:

- Chevron expects capital and exploratory spending to rise 22.5% in 2007 as it seeks to increase its oil production, the No. 2 U.S. oil company said. It sees capital and exploratory spending of about $19.6 billion in 2007, up from about $16 billion this year. The company also said its board had approved a plan to buy back as much as $5 billion in common stock over as many as three years. Nearly 75% of Chevron's 2007 budget — $14.6 billion — is for exploration and production, and about 20% is earmarked for refining, marketing and transportation.

• Downstream news:

• Business/Finance news:

- Fast-growing oil producer Angola, along with Ecuador and Sudan, may join OPEC, an expansion that would bolster the cartel's influence over oil prices worldwide. Officials in Angola and Sudan said Thursday that the African nations planned to apply for membership in the 11-nation Organization of the Petroleum Exporting Countries. That follows a similar declaration this week by Rafael Correa, the newly elected president of Ecuador, a former OPEC member that left the group in 1992. In all, the three countries would bring about 2 million barrels of daily oil production to OPEC, which pumps more than a third of the world's oil. The cartel cut its nearly 28 million barrels of daily oil production by 1.2 million barrels a day beginning Nov. 1, which has helped push crude prices up about 7%. Member countries appear divided over whether to reduce output further when they meet in Nigeria on Dec. 14. Chevron Corp. of San Ramon, Calif., which has substantial oil and natural gas projects in Angola stated "It is premature to speculate about the decision," Chevron said Thursday in a statement about Angola's potential OPEC membership.

- Chevron Corporation (NYSE: CVX) confirmed that Western Australia's environment minister has cleared the way for environmental approval to be granted to the Gorgon project subject to conditions. The minister has upheld the Gorgon proponents' appeal of the Western Australia Environmental Protection Authority's June 2006 advisory bulletin that recommended against the Gorgon project's Environment Impact Statement and Environmental Review and Management Plan. The Gorgon project proposal involves a two-train liquefied natural gas (LNG) plant and a domestic gas plant on Barrow Island, located off Australia's northwest coast, home to Australia's largest operating onshore oil field for more than 40 years.

- Seventeen oil companies and gasoline service stations have been named in a class-action suit filed by a small number of truck drivers and motorists in California. accusing them of overcharging customers at the pump by failing to compensate for changes in gasoline volumes when temperatures rise. The consumer fraud suit contends that oil companies fail to take into account the fact that gasoline expands when the temperature exceeds 60 degrees. Therefore, the suit says, consumers get less energy for each gallon they buy. The companies named in the suit include Chevron, 7-Eleven, Valero and Wal-Mart Stores.

- Gov. Arnold Schwarzenegger has raised about $640,000 in private donations to cover part of the costs of his two-day inaugural celebration next month, tapping lobbyists, well-heeled campaign supporters, insurance companies and businesses that depend on state action as part of a fund-raising campaign that is still underway. Top-tier donors contributing $50,000 apiece include Chevron and the California Chamber of Commerce.




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