Chevron Successful in the U.K 23rd Licensing Round

Chevron North Sea, a subsidiary of Chevron Corp. was the successful bidder and awarded equity in eight exploration blocks of strategic interest to the company under the 23rd United Kingdom Offshore Licensing Round.

Blocks 205/2 (part), 212/30, 213/16 and 213/17 are located near the recent significant Rosebank/Locknagar offshore discovery approximately 78 miles (126 km) west of Shetland. Chevron will be the operator with a 40 percent equity position. Other block joint-venture partners are Statoil, 30 percent, OMV (UK) Ltd., 20 percent and DONG UK Ltd., 10 percent.

Blocks 215/30, 216/26 and 216/27 are located near the Capercaille prospect west of Shetland. Chevron will be the operator with a 65 percent equity position. Other block joint-venture partners are Maersk Oil U.K. Ltd., 25 percent and Talisman Energy (UK) Ltd., 10 percent.

Block 13/22d within the inner Moray Firth is located south of Chevron's Captain Field operations. Chevron will be the operator with 70 percent equity interest, and is partnered with the Korean National Oil Company with a 30 percent interest.

The additional acreage strategically builds on the momentum of Chevron's recent exploration successes at Rosebank/Lochnagar and efforts in other frontier locations of the Faroes-Shetland Basin. The company is also able to build on its position in the multiphased development of the Captain Field.

John Watson, president of Chevron International Exploration and Production Co., said, "Our success in the 23rd U.K. offshore licensing round shows Chevron's continued commitment to building a focused portfolio of key exploration prospects worldwide and to further strengthen our North Sea position."

Gary Luquette, president and managing director for Chevron's Upstream Europe business unit, said, "We are very pleased with our awards under the 23rd round, which are located around current acreage and assets: Rosebank/Lochnagar, Capercaille and the Moray Firth. The award of these blocks enhances our strong position in the U.K. continental shelf frontier areas. In addition, the block adjacent to the Captain Field increases our holdings in a core producing area and adds development prospects for the medium and long term."