ChevronTexaco Awards Development Contracts for Block 14

ChevronTexaco's subsidiary Cabinda Gulf Oil Co. Ltd. has awarded three major contracts for the first phase of the development of the Benguela, Belize, Lobito and Tomboco (BBLT) fields in Angola's deepwater Block 14.

BBLT will be the second major development in the highly prolific Block 14, which has yielded nine discoveries to date. The Kuito Field development, which began production in late 1999 -- 30 months after discovery -- is Angola's first deepwater producer.

The BBLT Development is located 50 miles (80 kilometers) offshore in more than 1,250 feet (381 meters) of water. Plans are to combine the Benguela-Belize integrated Drilling and Production Platform (DPP) hub facility, supported by a Compliant Piled Tower (CPT), with tieback to the Lobito-Tomboco sub-sea wells, enabling the phased development of the BBLT reserve base. This is believed to be the industry's first application of CPT structural technology outside the Gulf of Mexico. At 1,280 feet (394 meters) the tower when complete will be among the world's tallest man-made structures.

"The exploration and production assets in ChevronTexaco's Angola portfolio are of great importance to the company's growth strategy," said George Kirkland, president of ChevronTexaco Overseas Petroleum Inc. "Bringing additional production on-stream in Block 14 is a key component of this strategy."

Execution of the Benguela Belize Project, the first phase of the overall BBLT Development, is now under way and first production from the Benguela and Belize fields is expected by the end of 2005. The first-phase development also includes the drilling and completion of more than 30 development wells, some of which will employ extended reach technology.

Daewoo Shipbuilding and Marine Engineering (DSME) has been awarded the contract for the engineering, procurement, construction and installation of the production facilities, CPT and the gas and oil export pipelines. KCA/Deutag has been awarded the contract for the engineering, procurement and construction of the platform drilling rig and the contract for future operations and maintenance of the rig.

"The BBLT Development is a world-class project that demonstrates the ongoing commitment of the Block 14 Contractor Group to work collaboratively with the Government of Angola in developing the significant oil reserves in Block 14," said Jim Blackwell, recently appointed as CABGOC's managing director. "We're delighted with the prospects of going forward with the first phase of this major development and we're looking forward to a safe and timely installation and start-up."

The second phase of the BBLT Development involving the Lobito and Tomboco fields is expected to produce via sub-sea wells tied into the central production hub. First production from Lobito and Tomboco is expected no later than early 2007.

Combined BBLT annual production is expected to peak at 200,000 barrels of oil per day by 2009.

CABGOC, headquartered in Luanda, Angola, is the Operator of the Block 14 Contractor Group, which is comprised of: Cabinda Gulf Oil Co. Ltd. (31 percent), Agip Angola Exploration B.V. (20 percent), Sonangol Pesquisa & Producao, S.A.R.L. (20 percent), TotalFinaElf Exploration & Production, Angola (20 percent) and Galp-Exploracao e Producao Petrolifera, LDA (9 percent).