ChevronTexaco and Ecopetrol Sign an Extension Agreement for the Guajira Area A Association Contract in Colombia

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Dec. 15, 2003

ChevronTexaco's Colombia subsidiary, ChevronTexaco Petroleum Company, and Ecopetrol, the Colombian national oil company, today signed an agreement to extend their existing Guajira Area A Association contract and continue natural gas production activities in the northeastern coastal region of the country. The two companies each own a 50 percent interest in the existing contract, which is set to expire at the end of 2004.

The extension agreement allows ChevronTexaco to continue its equity participation beyond 2004. Under the new contract, ChevronTexaco will hold a 43 percent interest in exchange for financial and technical benefits to Ecopetrol, which will hold the remaining 57 percent interest.

"ChevronTexaco is committed to Colombia and is pleased to have the opportunity to continue a relationship that has existed for more than 75 years," said George Kirkland, president of ChevronTexaco Overseas Petroleum. "We are proud of our history and contribution to the country through the production of energy, creation of jobs and the development we have brought to the Guajira region. This agreement allows us to maximize, and potentially grow, the value of our base natural gas business in Colombia for ChevronTexaco and our partner, Ecopetrol."

The extension agreement is for the commercial life of the fields and provides the framework for further investment to develop and produce the remaining natural gas reserves in the contract area.

ChevronTexaco Petroleum Company and Ecopetrol currently produce more than 80 percent of the natural gas consumed in Colombia. The gas comes from Chuchupa, the country's only offshore field, and Ballena, an onshore field located in Guajira State. Together these fields produce approximately 500 million cubic feet of gas a day.

The Guajira Extension contract replaces the Incremental Catalina Contract signed between ChevronTexaco and Ecopetrol on Feb. 8, 2003. The Guajira Extension contract was developed in conjunction with Ecopetrol in response to the Government of Colombia's determination that contract extensions are the correct approach for the type of activities contemplated for the contract area.

ChevronTexaco's history in Colombia dates back to the late 1920s, when the company began exploration activities. Today, ChevronTexaco operates the Ballena and Chuchupa fields. ChevronTexaco is active in the retail gasoline marketing industry in Colombia where there are 310 Texaco-branded service stations. In addition, through a joint venture, ChevronTexaco provides jet fuel to Colombia's major airports.

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