ChevronTexaco & Gazprom Discuss Joint Project Opportunities

Chevron Neftegaz Inc., an affiliate of ChevronTexaco, and Gazprom signed a six-month binding memorandum of understanding (MOU) that will allow the two companies to jointly undertake feasibility studies for the possible implementation of oil and gas projects in Russia and the United States.

Specifically, the two companies will assess the feasibility of an integrated liquefied natural gas (LNG) project in Russia, Gazprom's potential participation in a ChevronTexaco-led natural gas import terminal project in North America, ChevronTexaco's potential participation in existing Gazprom projects in northwest Siberia, and possible joint participation in other oil and gas opportunities.

Commenting on the announcement, ChevronTexaco Chairman and CEO Dave O'Reilly said: "ChevronTexaco maintains a strong interest in making additional major, long-term investments in Russia that will help develop the country's long-term energy potential. In addition, the development of a global, integrated natural gas business is a cornerstone of our own growth strategy. The signing of an MOU with a company of Gazprom's stature is a positive step toward achieving both goals."

Adding his comments, Gazprom Chairman Alexey Miller said: "The signing of the MOU is confirmation of the commercial dialogue between Russia and the United States, as well as an example of the cooperation between our two companies. For Gazprom, access to the American gas market is strategically important, and in addition, we are keen to bring advanced LNG production and transportation technologies to Russia."

ChevronTexaco has existing interests in the Russian energy sector primarily through its 15 percent stake in the $2.6 billion Caspian Pipeline Consortium. Gazprom is Russia's largest company and the world's largest producer of natural gas, holding 25 percent of known global reserves.