ChevronTexaco Responds to Reclassification of Shell Reserves

ChevronTexaco issued the following statement in response to inquiries received in connection with the January 9, 2004, announcement by Royal Dutch Shell that it will reduce its proved crude oil and natural gas reserve quantities by 20 percent:

ChevronTexaco has a rigorous review process for determining how and when its proved reserves for crude oil and natural gas reserves are recognized. Today's announcement by Shell will not affect how ChevronTexaco's worldwide reserves are currently categorized, including Nigeria and Australia.

John Gass, President of ChevronTexaco Global Gas confirmed that the company has yet not recognized any proved reserves for its interest in the Gorgon Joint Venture natural gas development project in Australia. "Our Gorgon project continues its steady progress toward commercialization, having received in-principle approval in 2003 from the Western Australia state government for the restricted use of Barrow Island for a foundation development in 2003, and strong market support including a memorandum of understanding with the Chinese National Oil Company to import Gorgon LNG into China," Gass said.

The company further indicated that it will announce its proved crude oil and natural gas reserve activity for 2003 at the time of its fourth quarter earnings announcement on January 30, 2004.