ChevronTexaco & NNPC Move Forward with Agbami Development

ChevronTexaco confirms that an agreement has been reached by NNPC; Famfa Oil Limited; ChevronTexaco affiliate, Star Deep Water Petroleum Limited; and Petroleo Brasiliero Nigeria Limited (Petrobras) that will govern future operations on the petroleum concession covered by OPL 216, offshore Nigeria. The agreement clears the way for planned activities towards the development of the Agbami Field.

Commenting on the announcement, George L. Kirkland, President, ChevronTexaco Overseas Petroleum Inc., said: "This agreement marks an important stage in the development of the Agbami Field, itself an important component of ChevronTexaco's growth strategy in West Africa. With our partners, we can now move forward in earnest towards our targets of first oil by 2007 and adding an eventual 250,000 barrels of oil per day to Nigeria's output during peak field production."

The Agbami partners will now move ahead immediately with the project bidding process, which will lead to the award of contracts for the provision of a Floating Production, Storage and Off-loading vessel and the construction and installation of sub-sea production facilities.

The Agbami Field ranks among the largest single discoveries in deepwater West Africa, with a structure spanning an area of 45,000 acres that straddles OPL 216 and OPL 217. The initial discovery well, announced in January 1999, encountered 420 feet of net pay in multiple zones. Produced hydrocarbons from the reservoir are light (45 degree API gravity) and sweet with no contaminants.

Partner interests in OPL 216 are: NNPC (50 percent); Star Deep (32 percent); Famfa (10 percent) and Petrobras (8 percent).