SAN RAMON, Calif., Jun 5, 2003 -- ChevronTexaco Corp. (NYSE: CVX) today announced that its wholly owned subsidiary Cabinda Gulf Oil Co. Ltd. (CABGOC) has awarded three major contracts for the first phase of the development of the Benguela, Belize, Lobito and Tomboco (BBLT) fields in Angola's deepwater Block 14.

BBLT will be the second major development in the highly prolific Block 14, which has yielded nine discoveries to date. The Kuito Field development, which began production in late 1999 -- 30 months after discovery -- is Angola's first deepwater producer.

The BBLT Development is located 50 miles (80 kilometers) offshore in more than 1,250 feet (381 meters) of water. Plans are to combine the Benguela-Belize integrated Drilling and Production Platform (DPP) hub facility, supported by a Compliant Piled Tower (CPT), with tieback to the Lobito-Tomboco sub-sea wells, enabling the phased development of the BBLT reserve base. This is believed to be the industry's first application of CPT structural technology outside the Gulf of Mexico. At 1,280 feet (394 meters) the tower when complete will be among the world's tallest man-made structures.

"The exploration and production assets in ChevronTexaco's Angola portfolio are of great importance to the company's growth strategy," said George Kirkland, president of ChevronTexaco Overseas Petroleum Inc. "Bringing additional production on-stream in Block 14 is a key component of this strategy."

Execution of the Benguela Belize Project, the first phase of the overall BBLT Development, is now under way and first production from the Benguela and Belize fields is expected by the end of 2005. The first-phase development also includes the drilling and completion of more than 30 development wells, some of which will employ extended reach technology.

Daewoo Shipbuilding and Marine Engineering (DSME) has been awarded the contract for the engineering, procurement, construction and installation of the production facilities, CPT and the gas and oil export pipelines. KCA/Deutag has been awarded the contract for the engineering, procurement and construction of the platform drilling rig and the contract for future operations and maintenance of the rig.

"The BBLT Development is a world-class project that demonstrates the ongoing commitment of the Block 14 Contractor Group to work collaboratively with the Government of Angola in developing the significant oil reserves in Block 14," said Jim Blackwell, recently appointed as CABGOC's managing director. "We're delighted with the prospects of going forward with the first phase of this major development and we're looking forward to a safe and timely installation and start-up."

The second phase of the BBLT Development involving the Lobito and Tomboco fields is expected to produce via sub-sea wells tied into the central production hub. First production from Lobito and Tomboco is expected no later than early 2007.

Combined BBLT annual production is expected to peak at 200,000 barrels of oil per day by 2009.

CABGOC, headquartered in Luanda, Angola, is the Operator of the Block 14 Contractor Group, which is comprised of: Cabinda Gulf Oil Co. Ltd. (31 percent), Agip Angola Exploration B.V. (20 percent), Sonangol Pesquisa & Producao, S.A.R.L. (20 percent), TotalFinaElf Exploration & Production, Angola (20 percent) and Galp-Exploracao e Producao Petrolifera, LDA (9 percent).

Notes to Editors:

1. Block 14 is situated within the Lower Congo Basin, offshore Angola. It covers 1,500 square miles (4,000 square kilometers), in water depths extending from 650 to 6,500 feet (200 to 2,000 meters).
2. There have been nine discoveries in Block 14 since 1997: Kuito (1997), Benguela (1998), Belize (1998), Landana (1998), Lobito (2000), Tomboco (2000), Tombua (2001), Gabela (2002), Negage (2002).
3. Kuito Field, which was discovered in 1997, began the first phase of production on Dec. 15, 1999. Kuito has produced nearly 69 million barrels from a deepwater environment in only five years from field discovery, which is a remarkable achievement. The short cycle time from discovery to first oil (only 30 months) was unprecedented in the industry for a development of Kuito's magnitude.
4. Compliant Piled Towers are bottom-founded (attached by piles driven into the substrate), offshore structures designed for cost-effective development in deepwater environments, typically in water depths ranging from 1,000-3,000 feet (300-900 meters). Compliant Piled Towers provide bottom-founded developments in these water depths at costs appreciably less than conventional structures due to reduced steel requirements. The Towers are compliant (flexible) as they are able to mitigate the changing wind, wave and current conditions around the facility.
5. The combined contract awards are valued at more than $820 million. The contract to DSME is worth more than $700 million for the engineering, procurement, construction and installation of the production facilities, Compliant Piled Tower and the gas and oil export pipelines. The contracts to KCA/Deutag are worth approximately $120 million for the engineering, procurement and construction of the platform drilling rig and the contract for the future operations and maintenance of the rig.

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.

Some of the items discussed in this press release are forward-looking statements about the future development of the Benguela, Belize, Lobito and Tomboco (BBLT) fields in Angola's deepwater Block 14, including the expected timing of commencement of production levels arising from the phased development plan. The statements are based on management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are potential delays in the development, construction or start-up of planned operations; potential failure to achieve expected production from the BBLT development; potential disruption or interruption of the company's development plans; inability or failure of the company's joint-venture partners to fund their share of operations and development activities; local political events; and general economic conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, ChevronTexaco undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE ChevronTexaco Corp.