Chevron Acquires Norwegian North Sea Assets In Swap

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June 26, 1997

Chevron today announced it reached agreement with Statoil to exchange equity in certain oil assets in the U.K. and Norwegian sectors of the North Sea. The exchange will become final pending approval by the British and Norwegian governments.

Through the swap arrangement, Chevron will acquire a 7.56 percent interest in the Draugen oil field located in the Haltenbank area offshore mid-Norway. Chevron also expects to acquire operator status of licence P157, and Statoil's interests (ranging from 15 to 30 percent) in three additional licenses in the Draugen area: PL156, PL158, PL176; plus license PL182 in the Barents Sea.

Statoil will acquire a 12 percent equity in the Chevron-operated Alba oil field in Block 16/26 of the U.K. sector of the North Sea, about 130 miles northeast of Aberdeen.

"We are delighted to have reached this mutually beneficial arrangement with Statoil. Re-establishing a presence in offshore Norway is a major step towards our strategic goal of growing exploration and production in Europe," said Richard Matzke, a director of Chevron Corp. and president of Chevron Overseas Petroleum. Matzke noted that "the swap puts Chevron in an excellent position in the region, with immediate cash flow from existing production and good prospects for future exploration."

The Chevron executive pointed out that Alba remains a key part of Chevron's continuing focus on the core areas in the Central North Sea and West of the Shetland Islands, within the Company's strategic growth plan in Europe.

Bob Connon, managing director for Chevron Europe said, "We are eager to return to the Norwegian Shelf, which we believe contains some of the most attractive oil and gas potential in the world." Connon added that the deal affords mutual strategic value to both companies, and "demonstrates our fruitful relationship, which I am confident will produce additional business opportunities."

Connon also placed special emphasis on Chevron's continued commitment to both the Alba field and the U.K. Continental Shelf, noting that "Alba is a first rate producing asset, and Chevron remains the operator and largest shareholder with 21.17 percent."

Notes to editors:
On June 14, the Alba field produced 113,211 barrels of oil. This exceeded its previous record in January this year of 109,250 bopd. High production rates have been possible following modifications completed on the platform as part of the Alba Phase II development.
The company remains operator and the largest stakeholder in Alba following the reduction of its equity from 33.17 percent to 21.17 percent. The exchange will give Statoil a 17 percent interest in the field, the second largest.
The deal is another next step in ongoing co-operation between Chevron and Statoil which, at the beginning of June, jointly acquired the LL-652 oil field in the 3rd Venezuelan Reactivation Round.
Appendix A
Alba Facts and Figures
Location: Block 16/26, 130 miles north-east of Aberdeen
Discovered: 1984, by Chevron
Daily production: 88,516 barrels
Water depth: Approx. 138 meters
First production: January 14, 1994
Alba Partners and Equities (post transaction)
Chevron U.K. Limited (Operator) 21.17%
Conoco (U.K.) Limited 9.33%
Conoco Petroleum Limited 2.35%
Fina Petroleum Development Limited 12.65%
Petrobras U.K. Limited 2.25%
Saga Petroleum UK Limited 11.75%
Statoil Exploration (U.K.) Limited 17.00%
Unilon Oil Explorations Limited/
Baytrust Oil Explorations Limited 8.00%
Union Texas Petroleum Limited 15.50%
Appendix B
The Draugen Field Facts and Figures
Location: Haltenbanken, Mid-Norway
Discovered: 1984
Daily production: 166,000 bopd
Water depth: 260 meters approx.
First production: October 1993
Draugen Field partners and Equities: Before After
Norske Shell (Operator) 16.2% 16.2%
BP Norge 10.8% 10.8%
Statoil 15.12% -
Chevron -
-— 7.56%
Other (unknown) -- 7.56%
DFI 57.88% 57.88%

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