Chevron Makes Final Investment Decision on Papa Terra Project Offshore Brazil

Chevron Corporation (NYSE:CVX) announced today that its Brazilian subsidiary will proceed with the development of the Papa Terra project as the company’s second deepwater development offshore Brazil.

"This decision confirms our commitment to developing new opportunities in an important basin and adds to our strong queue of major capital projects,” said George Kirkland, Chevron's vice chairman.

Situated 70 miles (110 kilometers) offshore in water depths of approximately 3,900 feet (1,190 meters), Papa Terra is a heavy oil subsea development located within Block BC-20 of the southern Campos basin. The project will feature the first tension leg well platform in Brazil which will be connected to a floating production, storage, and offloading vessel. The completed facility will be capable of producing up to 140,000 barrels of crude oil per day.

First production from the Papa Terra project is expected in 2013.

"When completed, the Papa Terra project will represent Chevron’s largest investment in Brazil to date and is expected to grow the company’s production capacity in the country which was established with the 2009 start-up of the Frade project,” said Ali Moshiri, president of Chevron Africa and Latin America Exploration and Production Company.

Chevron holds a 37.5 per cent interest in the Petrobras-operated Papa Terra project, which they estimate will cost $5.2 billion. The project is estimated to recover 380 million barrels of oil.

In addition to the Papa Terra and Frade projects in the Campos Basin, Chevron also holds a 30 percent non-operated interest in the Maromba field where work continues to select an optimal development plan. In the Santos Basin, Chevron holds a 20 percent non-operated interest in Block BS-4 where the company continues to evaluate development plans to commercialize the Atlanta and Oliva fields.

Chevron Corporation is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company’s success is driven by the ingenuity and commitment of approximately 62,000 employees who operate across the energy spectrum. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

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 Chevron’s activities in Brazil. Words such as "anticipates,” "expects,” "intends,” "plans,” "targets,” "projects,” "believes,” "seeks,” "estimates,” "budgets” and similar expressions are intended to identify such forward-looking statements. The statements are based upon 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 changes in prices of, demand for and supply of crude oil and natural gas; actions of competitors; continued development of the field; the potential disruption or interruption of production and development activities due to war, accidents, political events, civil unrest, or severe weather; government-mandated sales, divestitures, recapitalizations and changes in fiscal terms or restrictions on scope of company operations; and general economic and political 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, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with the SEC. Certain terms, such as "resources,” "oil in place,” "recoverable resources,” "oil-equivalent resources,” "potentially recoverable volumes” and "recoverable oil,” among others, may be used in this press release or other public disclosures that are not permitted to be used in filings with the SEC.