Chevron Granted 10-Year Extension in the Gulf of Thailand

Chevron's subsidiary Chevron Thailand, its co-concessionaires and the Thai Ministry of Energy have signed an agreement to extend the production period of four offshore blocks in the Gulf of Thailand for an additional 10 years, from 2012 to 2022.

The extension of these leases in block numbers 10, 11, 12 and 13 facilitates Chevron's long-range plans to boost production from this area to more than 1 billion cubic feet of natural gas per day. The offshore blocks encompass Erawan, Satun, Funan, Banpot, Plamuk, Yala, Pla Daeng and Platong operating areas in the Gulf of Thailand. Chevron has working interests in the operating areas within these blocks ranging from 60% to 80%.

"We extend our gratitude to the Kingdom of Thailand for its ongoing support and express our commitment to assisting with the long-term expansion of Thailand's energy resources," said Dave O'Reilly, Chevron's chairman and CEO. "We consider the Gulf of Thailand to be an exploration and production focus area for the company, and we look forward to working in partnership with the Kingdom to continue to grow our activities here."

"The development plan for this area calls for significant investments to create opportunities for further offshore development, boost recoverable reserves and production, and develop the energy resources of the Thai people to assist with long-term economic growth and prosperity," said Khun Tara Tiradnakorn, president of Chevron Thailand Exploration and Production.

Chevron's co-concessionaires in the blocks include Mitsui Oil Exploration Co., Ltd, and PTT Exploration and Production Public Company Limited.

Chevron operates more than 180 platforms in the Gulf of Thailand with 2006 total average daily production of more than 144,000 barrels of oil and condensate (73,000 net) and 1.6 billion gross cubic feet of gas (856 million net).

Chevron plans to invest $4 billion across its Asia-Pacific upstream and downstream businesses in 2007, which is approximately 20% of the company's worldwide capital budget. Historically, the company and its joint-venture partners have invested more than $12 billion in Thailand's oil and gas sector and paid the cumulative royalty of nearly $3.5 billion (1981 - 2006).