ChevronTexaco Sells Papua New Guinea Assets

ChevronTexaco has sold its indirect, wholly owned affiliate Chevron Niugini Ltd. (CNGL) and all of its assets in Papua New Guinea to Oil Search Limited for $96.6 million.

The transaction includes ChevronTexaco's oil and gas interests in the Kutubu, Moran, Gobe Main and South East Gobe oil fields in Papua New Guinea.

Commenting on the sale, Peter Robertson, vice chairman of ChevronTexaco Corp., said, "Our decision to conclude business in Papua New Guinea was a result of the company's ongoing review of its global portfolio. While the Papua New Guinea assets do not fit our future strategy, we take great pride in the outstanding relationship the company has enjoyed with the people and government of Papua New Guinea and in the recognition we've received for our environmental record and our sustainable development performance."

The sale announced today is subject to Papua New Guinea Government approvals and is expected to close in the fourth quarter of 2003.