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Chevron Corporation

Supplement to the 1999 Annual Report

The Energy to Grow

Gulf of Mexico Papua New Guinea

Nigeria Caspian Region

CONTENTS
1 Chevron Corporation Overview 26 Upstream Operating Data
2 Financial Information 26 Proved Reserves
2 Eleven-Year Financial Summary 27 Acreage
4 Consolidated Statements of Income 28 Liquids Production
5 Net Income by Major Areas of Operation 29 Natural Gas Production
6 Consolidated Balance Sheet 30 Natural Gas and Crude Oil Realizations
7 Consolidated Statement of Cash Flows 31 Net Wells Completed and Producing
8 Capital and Exploratory Expenditures
32 Worldwide Downstream
9 Properties, Plant and Equipment
32 Business Description
10 Miscellaneous Data
32 Highlights
11 Worldwide Upstream 33 Downstream Objectives
11 Highlights 33 Marketing – United States
12 Strategies and Accomplishments 34 Marketing – Canada
13 United States 35 Refining
15 Canada 37 Global Lubricants and Speciality Products
16 Africa 38 Caltex Corporation
19 Europe 41 Shipping
20 Asia Pacific 42 Pipelines
23 Caspian Region 43 Refining Capacities and Inputs
23 Middle East 45 Refined Product Sales and Realizations
24 South America 46 Marketing Outlets
25 Dynegy Inc.
47 Chemicals

50 Coal

51 G l o s s a r y o f Te r m s

52 Major Chevron Organizations

C h e v r o n i s a l e a d i n g w o r l d w i d e e n e r g y a n d c h e m i c a l c o m p a n y, o p e r a t i n g 1

in about 90 countries through more than 500 subsidiaries, par tnerships,

a f f i l i a t e s a n d o t h e r e n t i t i e s. T h e s e o r g a n i z a t i o n s e n g a g e i n a l l p h a s e s o f

t h e p e t r o l e u m i n d u s t r y.
CHEVRON CORPORATION
1999 HIGHLIGHTS
Overview
w Chevron reported net income of $2.070 billion for 1999, up 55 percent from 1998 net income. Earnings before special
items for 1999 were $2.286 billion ($3.47 per share - diluted), up 18 percent from $1.945 billion ($2.96 per share -
diluted) in 1998. The company succeeded in eliminating $500 million from its 1999 cost structure. Restructuring
activities led to staff reduction of 3,500 employees.
Exploration and Production (Upstream)
w Chevron completed acquisitions of upstream operations in high-growth areas - one in Argentina and the other in Thailand.

w Oil production started at the giant Kuito Field, Angola’s first deepwater production from Block 14.
w Chevron was named Managing Sponsor of the West African Gas Pipeline, a joint venture among six energy companies to
develop a 600-mile pipeline that runs from gas producing and processing facilities in Nigeria to Ghana via Benin and Togo.
w Chevron began producing from its first two deepwater projects in the Gulf of Mexico - Genesis and Gemini. Evaluation
of options is under way to develop a third Gulf of Mexico deepwater project, Typhoon.
w Construction of a pipeline by the Caspian Pipeline Consortium continued on schedule. The pipeline will deliver crude oil
from the Tengiz Field in Kazakhstan to the Black Sea port of Novorossiysk and is scheduled for start-up in mid-2001.
w Two significant natural gas discoveries were made in Fort Liard, Northwest Territories, Canada. Plans are being developed
for construction of the production and transportation facilities and additional wells to permit first production in 2000.
w In February 2000, Chevron's 28 percent-owned affiliate, Dynegy Inc., merged with Illinova
Corp., an energy services holding company in Illinois. Chevron increased its investment to History
maintain a comparable percentage ownership in the merged company. 1879 Incorporated in San Francisco, California, as the Pacific
Coast Oil Company.
Re f i n i n g, M a r ke t i n g a n d Tra n s p o r t a t i o n ( D ow n s t r e a m )
w Chevron continued to increase branded gasoline sales, growing another 5 percent in 1999. 1900 Acquired by the West Coast operations of John D. Rocke-
feller’s original Standard Oil Company.
w Chevron continues to be one of the top three gasoline marketers in 15 states and the top
gasoline marketer in British Columbia, Canada. 1911 Emerged as an autonomous entity, Standard Oil Company
(California), following U.S. Supreme Court decision to divide
w The Pascagoula Refinery fully recovered in 1999 from the devastating impact of Hurricane
Standard Oil into 34 independent companies.
Georges that shut down the refinery for most of the fourth quarter 1998. The refinery set
new throughput records in 1999. 1926 Merged with Pacific Oil Company to become Standard
Oil Company of California.
w The Burnaby Refinery began production of British Columbia mandated cleaner gasoline on
January 1, 1999. 1920s/ Began exploring in Indonesia and South America. Major
1930s exploratory successes followed, with discoveries of vast
w Caltex completed its headquarters relocation to Singapore and reorganized the company along reserves of crude oil in Bahrain and Saudi Arabia. Estab-
functional business units – Manufacturing Supply and Trading, Marketing, Lubricants, and lished production and refining operations in Canada.
New Business Development. The new organization permits more effective management and 1936 Formed Caltex Group of Companies, jointly owned with
allocation of resources. Texaco, to manage exploration and production interests,
Chemicals mainly in the Middle East and Indonesia, and to provide
w In February 2000, Chevron and Phillips Petroleum Company announced the signing of a an outlet for the crude through Texaco’s European markets.
letter of intent and exclusivity agreement to combine most of their worldwide chemicals 1940s/ Continued expansion that eventually led to participation
operations into a joint venture with more than $6 billion in assets. 1960s in a number of major discoveries, such as the North West
w Chevron’s Oronite Additives business, which holds a global leadership position in development, Shelf in Australia, the Ninian Field in the North Sea and
development of the Gulf of Mexico.
manufacture and marketing of fuel and lubricant additives, is not included in the combination
with Phillips. 1961 Acquired Standard Oil Company (Kentucky), a major petro-
leum products marketer in five southeastern states, to pro-
w Construction was completed of a 480,000 tons-per-year benzene and 220,000 tons-per-
vide outlets for crude oil from southern Louisiana and the
year cyclohexane plant in Saudi Arabia. The 50 percent joint venture plant began deliveries in
Gulf of Mexico, where the company was a major producer.
January 2000.
1984 Acquired Gulf Corporation – nearly doubling the size of oil
and gas activities – and gained significant presence in indus-
2000 OUTLOOK trial chemicals, natural gas liquids and coal. Changed name
w Chevron has established a strategic objective to exceed the financial performance of its to Chevron Corporation to closely identify with the name
strongest industry competitors in terms of total stockholder return. under which most products were marketed.
w To achieve its goal to be No.1 in total stockholder return, the company has targeted a 1988 Purchased Tenneco Inc.’s Gulf of Mexico oil and gas proper-
15 percent annual growth rate in earnings per share for the period 2000 to 2002, ties, becoming one of the largest U.S. natural gas producers.
supported by worldwide oil and gas production growth of 4 percent to 4.5 percent per
1993 Entered into a joint venture with the Republic of Kazakhstan
year and a minimum 12 percent return on capital employed.
to develop and produce the giant Tengiz Field, estimated to
w Chevron will continue to develop new Internet “business-to-business” opportunities as part hold at least 6 billion barrels of recoverable crude oil.
of new growth initiative aimed at capitalizing on Internet Web technology. 1997 Reported earnings of $3.256 billion, highest in company
history.
1999 Acquired Rutherford-Moran Oil Corporation and Petroleum
Argentina San Jorge S.A. Provided inroads to Asian natural
gas market and built on company’s Latin America business
foundation.

2

F I N A N C I A L I N F O R M AT I O N
E l e v e n - Ye a r F i n a n c i a l S u m m a r y

FINANCIAL HIGHLIGHTS 1
Millions of Dollars, Except Per-Share Amounts 1999 1998 1997
Income Before Cumulative Effect of Changes in Accounting Principles $ 2,070 $ 1,339 $ 3,256
Cumulative Effect of Changes in Accounting Principles – – –
Net Income $ 2,070 $ 1,339 $ 3,256
Comprehensive Income 2 2,045 1,326 3,083
Sales and Other Operating Revenues 35,448 29,943 40,596
Cash Dividends 1,625 1,596 1,493
Capital and Exploratory Expenditures 6,133 5,314 5,541
Equity Share of Affiliates’ Capital and Exploratory Expenditures,
Included Above 782 994 1,174
Cash Provided by Operating Activities 4,481 3,731 4,880
At December 31: Working Capital (592) (869) 60
CASH DIVIDENDS Total Assets 40,668 36,540 35,473
Total Debt 8,919 7,558 6,068
Dollars Per Share Stockholders’ Equity 17,749 17,034 17,472
2.50
Market Value of Common Shares 56,855 54,160 50,507
Common Shares Outstanding at December 31 ( Thousands ) 3 656,345 653,026 655,931
2.00
Per Share Data 3
Income Before Cumulative Effect of Changes in Accounting Principles – Basic $ 3.16 $ 2.05 $ 4.97
1.50 Income Before Cumulative Effect of Changes in Accounting Principles – Diluted 3.14 2.04 4.95
Cumulative Effect of Changes in Accounting Principles – – –
1.00 Net Income – Basic $ 3.16 $ 2.05 $ 4.97
Net Income – Diluted 3.14 2.04 4.95
0.50 Cash Dividends 2.48 2.44 2.28
Stockholders’ Equity at December 31 27.04 26.08 26.64
Market Price: December 31 865⁄ 8 82 15 ⁄ 16 77
0.00 High 10415⁄ 16 90 3 ⁄ 16 89 3 ⁄ 16
90 91 92 93 94 95 96 97 98 99
Low 731⁄ 8 67 3 ⁄ 4 61 3 ⁄ 4
Key Financial Ratios
Current Ratio 0.9 0.9 1.0
Interest Coverage Ratio 8.2 5.1 14.3
Total Debt / Total Debt Plus Equity 33.4% 30.7% 25.8%
Return on Average Stockholders’ Equity 11.9% 7.8% 19.7%
Return on Average Capital Employed 9.4% 6.7% 15.0%
1 Reflects the adoption of certain accounting standards that may affect comparability between years.

• Statement of Financial Accounting Standards (SFAS) No. 130 – “Reporting Comprehensive Income” adopted in 1998.
• SFAS No. 128 – “Earnings Per Share” adopted in 1997.
• SFAS No. 121 – “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of” adopted in 1995.
• SFAS No. 106 – “Employers’ Accounting for Postretirement Benefits other than Pensions” and SFAS No. 109 – “Accounting for Income Taxes”
adopted in 1992.
• 1989 through 1994 include adoption of a change for impairment of proved non-producing oil and gas properties.
• 1989 through 1991 reflect SFAS No. 96 – “Accounting for Income Taxes.”
2 Data not presented prior to 1996. SFAS No. 130 – “Reporting Comprehensive Income” does not require disclosure for these earlier periods.
3 Share and per-share amounts for all years reflect the two-for-one stock split in May 1994.

3

1996 1995 1994 1993 1992 1991 1990 1989 OPERATING, SELLING
AND ADMINISTRATIVE
$ 2,607 $ 930 $ 1,693 $ 1,265 $ 2,210 $ 1,293 $ 2,157 $ 251 EXPENSES, ADJUSTED
FOR SPECIAL ITEMS
– – – – (641) – – –
$ 2,607 $ 930 $ 1,693 $ 1,265 $ 1,569 $ 1,293 $ 2,157 $ 251 Billions of Dollars
2,529 10
42,782 36,310 35,130 36,191 38,212 38,118 41,540 31,916
1,358 1,255 1,206 1,139 1,115 1,139 1,043 953 8
4,840 4,800 4,819 4,440 4,423 4,787 4,269 3,982

6
983 912 846 701 621 498 433 389
5,947 4,057 2,891 4,186. 3,914 3,278 4,727 3,046
(965) (1,578) (1,801) (1,924) (1,063) (449) 1,072 1,037 4
34,854 34,330 34,407 34,736 33,970 34,636 35,089 33,884
6,694 8,327 8,142 7,538 7,841 7,697 6,769 7,516
2
15,623 14,355 14,596 13,997 13,728 14,739 14,836 13,980
42,451 34,166 29,084 28,380 22,600 23,924 25,477 24,053
0
653,086 652,327 651,751 651,478 650,348 693,444 701,600 710,048 91 92 93 94 95 96 97 98 99

$ 3.99 $ 1.43 $ 2.60 $ 1.94 $ 3.26 $ 1.85 $ 3.05 $ 0.37
3.98 1.43 2.59 1.94 3.26 1.85 3.05 0.37
.0– .0– .0– .0– (0.95) .0– .0– .0–
$ 3.99 $ 1.43 $ 2.60 $ 1.94 $ 2.31 $ 1.85 $ 3.05 $ 0.37
3.98 1.43 2.59 1.94 2.31 1.85 3.05 0.37
2.08 1.925 1.85 1.75 1.65 1.625 1.475 1.40
23.92 22.01 22.40 21.49 21.11 21.25 21.15 19.69
65 52 3 ⁄ 8 44 5 ⁄ 8 43 9 ⁄16 34 3 ⁄ 4 34 1 ⁄ 2 36 5 ⁄ 16 33 7⁄ 8
RETURN ON AVERAGE
68 3 ⁄ 8 53 5 ⁄ 8 49 3 ⁄ 16 49 3 ⁄ 8 37 11 ⁄ 16 40 1 ⁄ 16 40 13 ⁄ 16 36 CAPITAL EMPLOYED
51 43 3 ⁄ 8 39 7⁄ 8 33 11 ⁄ 16 30 1 ⁄ 16 31 3 ⁄ 4 31 9 ⁄ 16 22 7⁄ 8
Percent
15
0.9 0.8 0.8 0.8 0.9 0.9 1.1 1.1
10.9 4.1 7.6 7.4 8.2 5.1 7.6 2.9
30.0% 36.7% 35.8% 35.0% 36.4% 34.3% 31.3% 35.0%
17.4% 6.4% 11.8% 9.1% 11.0% 8.7% 15.0% 1.8%
10
12.7% 5.3% 8.7% 6.8% 8.5% 7.5% 11.9% 3.2%

This publication supplements Chevron Corporation’s 1999 Annual Report to stockholders 5
and should be read in conjunction with it. The financial information contained in this
Supplement is expressly qualified by reference to the Annual Report, which contains com-
plete audited financial statements, Management’s Discussion and Analysis of Financial
Condition and Results of Operations, and other supplemental financial data. 0
90 91 92 93 94 95 96 97 98 99

On Net Income
On Net Income Excluding
Special Items

381 PRINCIPLES Taxes Other Than on Income: Excise Taxes 3.716 5.650 $ 6.036 20.782 36.296 12.339 3.072 1.094 3.942 $ 17.447 36.078 7.184 1.0 Comprehensive Income 2 $ 2.880 3.834 5.255) Tax Benefit From Dividends Paid on Unallocated ESOP Shares 13 14 14 13 14 Retained Earnings at December 31 $ 17.461 15.0 Total Costs and Other Deductions 32.533 1.063 1.422 3.219 1.493) (1.625) (1.045 $ 1.586 15.695 39.587 5.607 Currency Translation Adjustment (43) (1) (173) (54) 1.119 1.133 859 2.607 $ 930 1.271 Chemicals 3.185 $ 15.974 INCOME BEFORE Exploration Expenses 538 478 493 455 372 CUMULATIVE Selling.568 3. General and Administrative Expenses 1.503 26.596 42.533 3.169 1.520 3.596) (1.299 2. respectively for asset impairment charges.239 1.147 Total Refined Produc ts 13.758 10 Chemicals Excise Taxes 30 40 13 12 12 Total Chemicals 3.781 11.185 $ 15.723 36.963 43.607 930 Cash Dividends (1.310 Crude Oil and Natural Gas Income From Equity Affiliates 526 228 688 767 553 Chemicals Other Income 612 386 679 344 219 Other Revenues Total Revenues 36.118 1.256 $ 2.115 1.982 14.090 4.256 $ 2. 2 Data not presented prior to 1996.339 $ 3.104 2.448 29.529 90 91 92 93 94 95 96 97 98 99 Retained Earnings at Januar y 1 $ 16.022 32.756 5. Depletion and Amortization 1 2.083 $ 2.054 3.070 1.893 37.033 Operating Expenses 5.070 $ 1.648 1. SFAS No. includes $985 million and $394 million.256 2.246 2.468 Residual Fuel Oils 369 519 837 923 681 Billions of Dollars 50 Other Refined Products 1.785 13.4 FINANCIAL INFORMATION Consolidated Statements of Income and Comprehensive Income C O N S O L I D AT E D S TAT E M E N T O F I N C O M E Year Ended December 31 Millions of Dollars 1999 1998 1997 1996 1995 Revenues: Sales and Other Operating Revenues: Gasolines $ 7.942 $ 17.293 2.544 3.202 4.007 5.938 28.746 Jet Fuel 2.070 $ 1.866 2.223 22.976 20 Total Petroleum 31.5 Net Income $ 2.557 41.574 3.377 1.770 0 90 91 92 93 94 95 96 97 98 99 All Other 371 402 368 326 269 Petroleum Products Total Sales and Other Operating Revenues 35.910 3.5 Other Comprehensive Income.216 3.146 1 In 1995 and in 1999.300 2.802 3.740 1.988 Billions of Dollars Other Taxes 676 655 733 706 760 3.190 4.285 30 Other Petroleum Revenues 1. Net of Tax (25) (13) (173) (78) 0.146 $ 14.0 Net Income $ 2.030 2.408 $ 14.167 1.457 Net Income 2.578 495 2.461 39.789 Income Tax Expense 1.502 4.196 $ 7.826 18.848 3.574 5.943 40.834 5. .019 Natural Gas Liquids 432 322 553 1. 130 – “Reporting Comprehensive Income” does not require disclosure for these earlier periods.714 2.960 2.5 Interest and Debt Expense 472 405 312 364 401 3.376 Natural Gas 2.320 2.742 11.358) (1.471 40 Crude Oil 10.5 Income Before Income Tax Expense 3.586 30.384 EFFECT OF CHANGES IN ACCOUNTING Depreciation.256 2.938 $ 7.280 6.429 REVENUES Gas Oils and Kerosene 2.153 35.0 Unrealized Holding Gain (Loss) on Securities 29 3 (4) (20) Minimum Pension Liability Adjustment (11) (15) 4 (4) 0.326 $ 3.281 1.013 2.082 Costs and Other Deductions: Purchased Crude Oil and Products 17.339 $ 3.144 Petroleum Excise Taxes 3.161 1.397 9.404 2.754 $ 6.434 3.408 $ 14.400 $ 16.

087 $ 72 – International 1.339 $ 3.169 2. Excluding Special Items 2.5 2 Net income is affected by transactions that are unrelated to.619 1.5 Net Income $ 2.251 1. E XC LU D I N G S P E C I A L I T E M S Millions of Dollars Exploration and Production – United States $ 818 $ 381 $ 972 $ 1. or are not necessarily representative of.256 $ 2.197 1.5 Transportation – International 49 123 367 167 283 3. Net 78 (602) (83) (78) 84 Total Special Items $ (216) $ (606) $ 76 $ (44) $ (1.070 $ 1.072 2.974 1. 121 – – – – (659) of Changes in Accounting Environmental Remediation Provisions.0 – Total 424 756 1. Special items for each year are shown in the table below: Net Income Net Income Excluding Asset Dispositions $ 211 $ (9) $ 183 $ 391 $ 7 Special Items Asset Write-Offs and Revaluations (346) (159) (86) (337) (304) * Before Cumulative Effect Initial Implementation of SFAS No. Marketing and – United States 375 633 662 290 75 3. 0.253 2.256 $ 2. NET INCOME EXCLUDING – International 1.5 All Other (317) (60) (242) (285) (283) 2.070 $ 1.607 $ 930 N E T I N CO M E B Y M A J O R A R E A S O F O P E R AT I O N .093 707 1.363 Billions of Dollars Refining.945 3.286 1.032) . interest income on cash and marketable securities.032) 1.156 717 1. Net (123) (39) (35) (54) (90) Principles. real estate. FINANCIAL INFORMATION 5 Net Income by Major Areas of Operation N E T I N CO M E B Y M A J O R A R E A S O F O P E R AT I O N Year Ended December 31 Millions of Dollars 1999 1998 1997 1996 1995 Exploration and Production – United States $ 526 $ 365 $ 1.298 762 Refining.651 1.142 811 SPECIAL ITEMS* – Total 1. Such items have been excluded from net income by major areas of operation to indicate 90 91 92 93 94 95 96 97 98 99 the underlying trends of operational results. Prior-Year Tax Adjustments 109 271 152 52 (22) Restructurings and Reorganizations (183) (43) (60) (14) (50) LIFO Inventory (Losses) Gains 38 (25) 5 (4) 2 Other. coal operations.098 2.” can obscure the underlying results of operations for a year as 0 well as affect comparability of results between years. These transactions.001 $ 1. Marketing and – United States 357 572 601 193 (104) Transportation – International 74 28 298 226 345 – Total 431 600 899 419 241 Chemicals 109 122 228 200 484 All Other 1 (89) (455) (124) (310) (557) Net Income $ 2.0 Net Income.0 1 “All Other” includes interest expense.029 457 358 Chemicals 205 151 224 228 524 2. and insurance activities. the company’s ongoing operations.339 $ 3. corporate center items.109 $ 552 NET INCOME VS.252 1.211 690 – Total 1.607 $ 930 1.962 Special Items 2 (216) (606) 76 (44) (1. defined by Chevron management and designated “special items.180 2.

297 6.907 9.337 49.668 $ 36.014 Inventories: Crude Oil and Petroleum Products 585 600 539 669 822 Chemicals 526 559 547 507 487 Materials. at Cost 54.942 7.473 $ 34.034 17.867 Long-Term Receivables 815 872 471 261 149 Investments and Advances 5.212 51.688 2.696 Percent Deferred Charges and Other Assets 1.598 Prepaid Expenses and Other Current Assets 1.706 $ 3.434 $ 3.645 3.562 25.297 7.463 4.393 4.975 Stockholders’ Equity 17.496 4.678 Refining.623 14.355 Total Liabilities and Stockholders’ Equity $ 40. Plant and Equipment.431 3.345 $ 569 $ 1.402 1.317 23.560 1.031 TOTAL DEBT/ TOTAL DEBT Less: Accumulated Depreciation.233 46.521 Deferred Credits and Other Non-current Obligations 1.739 2. Plant and Equipment 25.806 Accounts Payable 3.506 18.431 1.745 1.015 $ 892 $ 621 Marketable Securities 687 844 655 745 773 Accounts and Notes Receivable 3.787 11.895 Chemicals 4. cash equivalents and marketable securities.668 $ 36.433 0 Reserves for Employee Benefit Plans 1.518 All Other 2 5.664 1.335 PLUS EQUITY Net Properties.796 1.604 4. .854 $ 34.742 1.851 2.378 1.001 19. coal assets.440 26.854 $ 34.008 1.330 CO N S O L I D AT E D A S S E T S 1 Millions of Dollars Exploration and Production $ 19.202 1.919 19.226 3. Marketing and Transportation 11.502 3.473 1 Prior to 1997.895 27.010 3.382 Total $ 40.735 3.540 $ 35.584 90 91 92 93 94 95 96 97 98 99 Total Liabilities 22.668 $ 36.294 Accrued Liabilities 1.6 FINANCIAL INFORMATION Consolidated Balance Sheet CO N S O L I D AT E D B A L A N C E S H E E T At December 31 Millions of Dollars 1999 1998 1997 1996 1995 Assets Cash and Cash Equivalents $ 1.671 21.103 2.473 $ 34.540 $ 35.992 Non-current Deferred Income Taxes 5.038 829 692 531 40 Total Assets $ 40.445 10 Long-Term Debt and Capital Lease Obligations 5.035 4.215 2.988 4.420 1.165 $ 1.643 11. data not disclosed in this format.314 $ 16.087 Properties.813 3.450 1.341 4. Depletion and Amortization 28.330 Liabilities and Stockholders’ Equity 30 Short-Term Debt $ 3.231 4.455 1.210 1.231 19. Excludes intercompany investments or receivables.175 616 584 839 861 Total Current Assets 8.820 $ 15.485 4.170 2.889 7.257 20 Federal and Other Taxes on Income 718 226 732 745 558 Other Taxes Payable 424 403 392 534 530 Total Current Liabilities 8.472 15. and management information systems.204 4.936 48.858 1.946 8.374 4.627 1. Supplies and Other 291 296 292 255 289 1. 2 Includes cash.608 26. real estate.006 7.496 21.749 17.729 22.540 $ 35.873 3.166 6.637 $ 2.

015 892 621 413 Cash and Cash Equivalents at December 31 $1.812) (2.880 5.713 (163) (1.035) Activities Effect of Foreign Currency Exchange Rate Changes on Capital Expenditures Cash and Cash Equivalents 1 (10) (19) (2) (10) Dividends Net Change in Cash and Cash Equivalents 776 (446) 123 271 208 Cash and Cash Equivalents at Januar y 1 569 1.256 $2.825 3.366) (3.731 4. 2 Capital expenditures exclude the equity share of affiliates. .804) 2 Financing Ac tivities: Net Borrowings (Repayments) of Short-Term Obligations 219 1.443) (2. Depletion and Amortization 2.424) (3.724) (3.487 2.481 3.878) (2.903 Other. Net 32 (230) (297) (177) – 3 Net Cash Used for Investing Ac tivities (3.015 $ 892 $ 621 1 Certain amounts were reclassified to conform to 1999 presentation.759) 4 Sales of Marketable Securities 3.529) 5 Proceeds From Asset Sales 992 434 1.080) (3.221 224 26 95 536 Repayments of Long-Term Debt (549) (388) (421) (476) (103) 0 Cash Dividends Paid (1.899) (3.235 778 581 Purchases of Marketable Securities (2.179) (227) 1 Proceeds From Issuances of Long-Term Debt 1.057 Billions of Dollars 6 Investing Ac tivities: Capital Expenditures 2 (4.381 Dry Hole Expense Related to Prior Years’ Expenditures 126 40 31 55 19 Distributions (Less) Greater Than Income From Equity Affiliates (258) 25 (353) 83 (129) Net Before-Tax (Gains) Losses on Asset Sales and Retirements (471) (45) (344) 207 164 Net Foreign Exchange Losses (Gains) 23 (20) (69) (10) 47 Deferred Income Tax Provision 226 266 622 359 (258) (Increase) Decrease in Operating Working Capital Composed of: (Increase) Decrease in Accounts and Notes Receivable (810) 552 474 38 (62) Decrease (Increase) in Inventories 72 (116) (11) 60 (162) (Increase) Decrease in Prepaid Expenses and Other Current Assets (43) (23) 59 15 (148) CASH FROM Increase (Decrease) in Accounts Payable and Accrued Liabilities 915 (807) (685) 369 428 OPERATING ACTIVITIES Increase (Decrease) in Income and Other Taxes Payable 502 (415) (90) 167 (16) COMPARED WITH CAPITAL EXPENDITURES Net Decrease (Increase) in Operating Working Capital 636 (809) (253) 649 40 AND DIVIDENDS Other.779) (2.895) (1. Net (737) 615 (310) (219) (137) Net Cash Provided by Operating Ac tivities 4.345 $ 569 $1.860) (2.074 2.358) (1.679) (2.300 2. FINANCIAL INFORMATION 7 Consolidated Statement of Cash Flows CO N S O L I D AT E D S TAT E M E N T O F C A S H F LO W S 1 Year Ended December 31 Millions of Dollars 1999 1998 1997 1996 1995 Operating Ac tivities: Net Income $ 2.255) 90 91 92 93 94 95 96 97 98 99 Net Sale (Purchases) of Treasury Shares 108 (261) 173 23 14 Cash From Operating Net Cash Used for Financing Ac tivities (626) (308) (1.496 2.947 4.607 $ 930 Adjustments: Depreciation.070 $ 1.625) (1.493) (1.859) (2.216 3.339 $ 3.596) (1.320 2.880) (3.866 2.

765 2.133 $ 5.133 1.075 2.213 60 Marketing 411 582 651 600 472 Transportation 224 115 106 76 46 Chemicals 462 744 664 497 204 40 All Other 117 223 193 111 151 Total Worldwide $ 6.997 Refining 299 388 365 534 1.789 2.307 965 910 889 717 80 Production 3. 2 Other exploration expenses include expensed well contributions.456 1. Excludes amortization of undeveloped leaseholds.093 International Exploration 952 462 447 402 376 Production 2.840 $ 4. and other miscellaneous expenses.196 681 538 Refining 241 264 188 150 646 Marketing 237 343 255 204 201 Transportation 44 47 77 75 45 Chemicals 326 385 470 377 172 All Other 117 223 140 101 150 Total United States 1.459 Refining 58 124 177 384 567 CAPITAL AND Marketing 174 239 396 396 271 EXPLORATORY Transportation 180 68 29 1 1 EXPENDITURES BY GEOGRAPHIC AREA Chemicals 136 359 194 120 32 All Other – – 53 10 1 Percent Total International 4.652 2.800 20 Memo: Affiliates’ Expenditures Included Above $ 782 $ 994 $ 1.639 1. research and development costs.732 2. .541 $ 4.174 $ 983 $ 912 0 90 91 92 93 94 95 96 97 98 99 E X P LO R AT I O N CO S T S E X P E N S E D 1 United States Millions of Dollars International Geological and Geophysical $ 151 $ 195 $ 124 $ 123 $ 76 Unproductive Wells Drilled 265 126 200 217 176 Oil and Gas Lease Rentals 5 5 5 14 11 Other 2 117 152 164 101 109 Total Exploration Expenses $ 538 $ 478 $ 493 $ 455 $ 372 Memo: United States $ 167 $ 213 $ 227 $ 172 $ 102 International $ 371 $ 265 $ 266 $ 283 $ 270 1 Consolidated companies only.313 2.8 FINANCIAL INFORMATION Capital and Exploratory Expenditures C A P I TA L A N D E X P LO R ATO RY E X P E N D I T U R E S – I N C LU D E S A F F I L I AT E S Year Ended December 31 Millions of Dollars 1999 1998 1997 1996 1995 United States Exploration $ 355 $ 503 $ 463 $ 487 $ 341 Production 674 817 1.480 1.314 $ 5.994 2.582 2.452 1.297 2.707 100 Worldwide Exploration 1.752 2.139 2.

173 Additions at Cost: Exploration and Production 1 3. Plant and Equipment $ 25.671 $ 21.221 2.496 $ 21.233 $ 46.671 $ 21.381) 10 Net Retirements and Sales: Exploration and Production (215) (33) (92) (445) (105) 5 Refining.562) (25. FINANCIAL INFORMATION 9 Properties.191) (944) Exploration and Net Intersegment Transfers and Other Changes: Production Exploration and Production 24 2 6 (10) (30) Refining and Refining. Plant and Equipment at December 31: Exploration and Production 3.407 7.194 NET PROPERTIES.366) (2. Depletion and Amortization Expense (2.895) (27.691 10. Plant and Equipment P R O P E R T I E S .682 8. 10 4 Includes net investment in unproved oil and gas properties. Depletion and Amor tization Expense: Exploration and Production (1.226 7. 3 1.252 1.212 $ 51.289) 20 Refining.300) (2. 4 14. coal assets and management information systems. Plant and Equipment $ 54.196 3.317 $ 23.847 10. Marketing and Transportation (22) (13) (109) (81) (87) Marketing Chemicals (1) – 7 107 88 Chemicals All Other 2 (30) (2) 93 (5) 28 All Other Total Net Intersegment Transfers and Other Changes 3 (29) (13) (3) 11 (1) Net Properties.866) (2.671 $ 21.451 2.650 Total Net Properties.696 Billions of Dollars 25 Memo: Gross Properties.440) (26.639 3.317 $ 23.808 3.473 Refining.521) (1. Depletion and Amortization (28.110 1.385 11.961 2.379 PLANT AND EQUIPMENT BY GEOGRAPHIC AREA All Other 2.548) (1. Plant and Equipment at January 1 $ 23.484 $ 373 $ 371 $ 295 $ 238 5 0 90 91 92 93 94 95 96 97 98 99 United States International . P L A N T A N D E Q U I P M E N T – I N C LU D I N G C A P I TA L L E A S E S At December 31 Millions of Dollars 1999 1998 1997 1996 1995 Net Properties. Marketing and Transportation 7.216) (3.031 Accumulated Depreciation.807 2.496 $ 21.496 $ 21.729 $ 22. Marketing and Transportation (557) (564) (575) (587) (680) Chemicals (193) (119) (104) (162) (186) 15 All Other 2 (135) (89) (100) (101) (226) Total Depreciation.729 $ 22.335) 20 Net Properties.936 $ 48. Refining.608) (26.197 NET PROPERTIES.240 1. $ 1.195 2.696 $ 22.994 3.849 Depreciation.981) (1.344 1.715 1. Chemicals 2.174 12. Marketing and Transportation (147) (127) (197) (329) (528) Chemicals (9) 3 (5) (22) (9) All Other 2 (140) (91) (36) (395) (302) 0 90 91 92 93 94 95 96 97 98 99 Total Net Retirements and Sales (511) (248) (330) (1.396 7. Plant and Equipment at December 31 $ 25. Marketing and Transportation 545 715 595 485 1.337 $ 49.222 PLANT AND EQUIPMENT BY FUNCTION Chemicals 385 501 627 413 194 All Other 2 103 202 135 103 236 Billions of Dollars 25 Total Additions at Cost 4.320) (2. 3 Includes reclassifications to/from other asset accounts. 15 2 Principally includes real estate.312 1.696 1 Net of exploratory well write-offs.625 2.729 $ 22.

09 STOCK PRICE Return on Average Capital Employed.044 Thousands Employee Benefit Costs (Millions of Dollars) $ 653 $ 462 $ 499 $ 546 $ 576 60 Investment Per Employee at December 31 (Thousands of Dollars) 7 $ 732 $ 629 $ 599 $ 547 $ 528 Average Sales Per Employee (Thousands of Dollars) 8 $ 833 $ 667 $ 873 $ 896 $ 706 50 Average Monthly Wage Per Employee $ 4.191 39.667 654.358 $ 1.3% 7.3% 6.93 Third Quarter 0.596 $ 1.128 $ 4. 0 Return on Average Capital Employed = (Net Income + Interest Expense After Tax) ÷ Average Capital Employed.8 Interest Coverage Ratio 8.31) 1.3% Return on Average Total Assets 5.1% 135.5% 2.362 40. 7 Investment = Year-End Capital Employed.989 $ 7.610 $ 7.026 655.906 $ 3.80 $ 6.493 $ 1. 10 FINANCIAL INFORMATION Miscellaneous Data M I S C E L L A N E O U S D ATA 1999 1998 1997 1996 1995 Per formance Measures Earnings.0% 12. 10 Total Debt/Total Debt Plus Equity Ratio = Total Debt.0% 36.6% 23.965 $ 2. Excluding Special Items + Interest Expense After Tax) ÷ Average 30 Capital Employed (Average of Stockholders’ Equity + Total Debt + Capital Lease Obligations + Minority Interests.4% 3.50 $ 0.0 0.16 $ 5. 20 4 Interest Coverage Ratio = (Income Before Taxes on Income + Interest and Debt Expense + Amortization of Capitalized Interest) ÷ Before-Tax Interest Costs.64) Year $ 3.820 43.0% Market Closing Price (Quarterly) Financial Ratios 4 Per Share (Dollars)* 100 Current Assets to Current Liabilities 0.9 0.0% Cash Dividends/Net Income (Payout Ratio) 78.931 653. Employees 5 Consolidated companies only.9 0.28 $ 2.7% 17.7% 12. Excluding Special Items = (Net Income.7% 5.286 $ 1.2% 14.9 4. .0% 22.468 653.14 $ 2.2% 9.327 Weighted Average Shares Outstanding for the Year (Thousands) 655. Years prior to 1997 have not been restated to conform with this methodology.44 Fourth Quarter 1.71 (0.962 Adjusted Operating Expenses (Millions of Dollars) 1 $ 7.940 $ 1.08 $ 1.88 1.43 Stockholders’ Equity Per Common Share at December 31 $ 27.891 $ 1.2 5. 8 Average Sales Per Employee = Sales and Other Operating Revenues (Net of Excise Taxes) ÷ Average Number of Employees (Beginning and End of Year).77 $ 1.9% 52.001 $ 6.9% 3.88 0.5% 119.70 1.6% 5.084 0 90 91 92 93 94 95 96 97 98 99 Number of Stockholders of Record at December 31 (Thousands) 118 126 122 131 136 Cash Dividends on Common Stock: *Adjusted For Two-For-One Millions of Dollars $ 1.94 $ 0.2% 45.180 $ 2.1% 9.651 $ 1.5% 30.9% 25 Common Stock Number of Shares Outstanding at December 31 (Thousands) 656. Payroll and Benefits 5 AT DECEMBER 31 Number of Employees at December 31 36.64 $ 23.10 1.12 $ 6. which is eliminated in the consolidated financial statements.345 653.27 $ 0.08 $ 26.3 10.98 $ 1.48 $ 2. Excluding Special Items (Millions of Dollars) $ 2.25 1.33 0.0% Cash Dividends/Cash From Operations 36. 92 93 94 95 96 97 98 99 Return on Average Total Assets = Net Income ÷ Average Total Assets (Beginning and End of Year).23 (0.594 Adjusted Operating Expenses Per Barrel 1 $ 5.875 $ 1.92 $ 22. Excludes special items and expenses of divested operations.117 $ 3.7% 75 Return on Average Stockholders’ Equity 11.086 652.5% 22.00 0.3% 11.991 652.769 652.837 40 1 Includes cost of the company’s own fuel consumed in operations.4% 30.4% Return on Average Capital Employed 9.1 Total Debt / Total Debt Plus Equity 33. 3 Total Stockholder Return = (Stock Price Appreciation + Reinvested Dividends) ÷ Stock Price at the beginning of the year.8% 32.4% 42.406 $ 7.9 1.4% 6.7% 9.1 14.04 $ 26.7% 50 Return on Sales 6.01 NUMBER OF EMPLOYEES Personnel.32 $ 5.33 0.44 $ 2.625 $ 1.490 39. Per Common Share $ 2.945 $ 3.93 Earnings Per Common Share – Diluted: First Quarter $ 0.53 0.04 $ 4.7% 25.7% 15. Service Station Personnel 6 Payroll costs do not include incentive bonuses. at Beginning and End of Year). Return on Average Stockholders’ Equity = Net Income ÷ Average Stockholders’ Equity (Beginning and End of Year).4% 6.8% 9.95 $ 3.8% 30.70 Second Quarter 0.8% 19. Excluding Special Items 2 10. Return on Sales = Net Income ÷ Sales and Other Operating Revenues (Net of Excise Taxes).931 $ 3.8% MOVEMENTS Total Stockholder Return 3 7.1% 28.255 Stock Split in May 1994. Including Capital Lease Obligations ÷ (Total Debt + Stockholders’ Equity).019 Payroll Costs (Millions of Dollars) 6 $ 1.9% 7. 2 Return on Average Capital Employed.

targeted to produce 155.S.000 barrels of oil per day.065 Net Liquids Production ( Thousands of Barrels Per Day) 316 325 811 782 Gross Natural Gas Production ( Millions of Cubic Feet Per Day) 1.739 874 654 Gross Proved Liquids Reserves ( Millions of Barrels) 1. deepwater operations in the Gulf of Mexico became a reality with first production from the Genesis and Gemini projects in 1999. while delineation drilling activity in the Hebron Field continued.890 48. with Chevron being appointed the operator of the field. Ireland Azerbaijan United States Turkey Vietnam duction rate of 80.000 barrels per day in Argentina.268 4. unless otherwise noted. The acquisition in March of Rutherford-Moran Oil Corporation provided Norway Russia entry to offshore oil and gas activity in the Gulf of Thailand. the company will participate in an Oil Sands Project. as well as its exploration Nigeria Bahrain Congo Thailand prospects in various South American countries.272 5.981 1. the Hibernia Field achieved peak production of 150. 2 Consolidated companies only.549 Gross Proved Natural Gas Reserves ( Billions of Cubic Feet) 4.954 5.437 Net Proved Natural Gas Reserves ( Billions of Cubic Feet) 3.072 1.806 Natural Gas Sales ( Millions of Cubic Feet Per Day) 3. w Off the east coast of Canada. Excluding Special Items ( Millions of Dollars) $ 818 $ 381 $ 1.000 barrels per day.004 4. curtailed by OPEC.666 Net Proved and Unproved Acreage (Thousands of Acres) 2 5.774 1. stood at 420.497 5. .639 1.093 $ 707 Earnings. CHEVRON w Nigeria production. This was followed by Canada United Kingdom Netherlands Kazakhstan China the September purchase of Petrolera Argentina San Jorge S.425 5. Upstream Upstream U P S T R E A M F I N A N C I A L A N D O P E R AT I N G H I G H L I G H T S 1 1999 1998 1999 1998 Reported Earnings ( Millions of Dollars) $ 526 $ 365 $ 1.061 935 737 Net Natural Gas Production ( Millions of Cubic Feet Per Day) 1. Production in 1999 from the Tengiz Field in Kazakhstan increased to 214.271 5. which came on stream in 1998. w In Europe. with 1999 production averaging Bolivia Brazil Republic Australia 460.639 $ 1.935 2. Typhoon. reached design capacity volume of 740 million cubic feet per day.788 4. is scheduled for first produc- tion in 2001. First production is scheduled for late 2002.249 Exploration Expenditures (Millions of Dollars) $ 355 $ 503 $ 952 $ 462 Production Expenditures (Millions of Dollars) $ 674 $ 817 $ 2.000 barrels per day.162 3. the Britannia gas field.850 1. the Caspian Pipeline Consortium celebrated the start of the construction of the marine terminal for the 900-mile crude-oil pipeline from western Kazakhstan to the Russian port of Novorossiysk. w In the United States.712 3. was brought on production in December.Chevron is one of the leaders in worldwide liquids production. w In May 1999. with its daily pro. ColombiaVenezuela Angola Qatar Indonesia Papua Equador Kuwait New Guinea Peru Democratic w Production in Angola continued to climb.480 1 Includes equity share of affiliates. Chile of Congo Argentina discovered in 1997.000 barrels of oil per day of bitumen for upgrading to high-quality synthetic crude oil.000 barrels per day by 2010.000 barrels per day and is expected to grow to 700.294 10. The giant Kuito Field in Angola’s deepwater Block 14.303 1. A third deepwater prospect.182 1.000-barrels-per-day gas-to-liquids plant in Nigeria capable of converting natural gas into synthetic liquid fuels. 11 C h e v r o n ’s s t r a t e g y t o f o c u s o n i n t e r n a t i o n a l u p s t r e a m a c t i v i t i e s resulted in international liquids production increasing for a tenth year in a row. Design and engineering continued on a UPSTREAM OPERATIONS 30. WORLDWIDE UPSTREAM Highlights 1999 HIGHLIGHTS w Chevron made two major acquisitions to continue growth of its international upstream business.504 Natural Gas Liquids Sales ( Thousands of Barrels Per Day) 133 130 57 53 Net Exploratory Oil and Gas Wells Completed 2 72 46 8 15 Net Development Oil and Gas Wells Completed 2 411 324 60 71 Net Wells Producing at Year End 2 10.A.148 3.775 41. Also in Canada.100 1.156 $ 717 Gross Liquids Production ( Thousands of Barrels Per Day) 354 366 1. International U.686 Net Proved Liquids Reserves ( Millions of Barrels) 1.499 5.

w Continue to emphasize exploration activities in major producing areas to leverage off existing infrastructure and expertise..000 hours.2 billion. w Achieved first oil from the Kuito Field. w Acquired Rutherford-Moran Oil Corp.12 WORLDWIDE UPSTREAM Strategies and Accomplishments NORTH AMERICA B U S I N E S S S T R AT E G I E S w Operate as a leader in conducting safe and environmentally sound operations. expand the liquefied natural gas busi- ness in the Asia-Pacific area and develop new opportunities to supply gas markets in Europe and the United States. Chevron’s Canadian upstream operations achieved a record low rate of 0. w Reached the design capacity of 740 million cubic feet per day at Britannia Field in the North Sea. the San Joaquin Valley. and capital to generate cash for the corporation. w Divest and implement alternative strategies for lower-performing assets. and focus on a limited number of high-potential frontier exploration areas. w Entered into a joint venture agreement establishing a consortium to develop the West African Gas Pipeline. w Began production from Genesis and Gemini. w Completed withdrawal from offshore California operations. w Began construction of the Caspian Pipeline Consortium’s 900-mile pipeline. w Drilled two successful Ft. w Announced significant gas discoveries offshore Western Australia at the Geryon and Orthrus wells. w Continue to generate cash and achieve top performance from assets in the Gulf of Mexico Shelf. Liard wells in northwestern Canada.97 per 200. 1999 ACCOMPLISHMENTS w Increased international oil and equivalent gas production for the tenth consecutive year. Midcontinent. technology. w Acquired Petrolera Argentina San Jorge S. an exploration and producing company that accounts for 8 percent of the oil production in Argentina. Australia. These projects are expected to continue to increase Chevron’s international production in the future. w Cut operating expenses by 66 cents per barrel from 1998 levels. Chevron’s first two Gulf of Mexico deepwater projects. a high-potential gas and oil area in the Gulf of Thailand.72 for recordable injuries. w Continued to high-grade Chevron’s North American portfolio by divesting mature. w Invest people. the lowest ever for Chevron upstream operations in the United States. w Capitalize on energy convergence opportunities through equity ownership in Dynegy. connecting the Tengiz Field to the Russian Black Sea port of Novorossiysk. the Permian Basin. w Generated cash flow of $1. and became the operator of Block B8/32. I N T E R N AT I O N A L B U S I N E S S S T R AT E G I E S w Continue to focus on current and planned developments in Africa. w Continue to seek opportunities to capture significant interests in known developments and existing projects. w Acquired a 20 percent interest in Shell Canada’s Athabasca Oil Sands Project. net of capital investments. Angola’s first deepwater project. Subsequently began producing from the Benchamas Field. Indonesia and Kazakhstan. and Western Canada.A. up 7 percent from 1998 level. with each well proving capable of over 70 million cubic feet of gas per day. w Commit resources to be a leader in the emerging areas of deepwater Gulf of Mexico and East Coast Canada. marking the end of 40 years of activity. higher-cost assets. w Pursue the commercialization of Chevron’s existing international gas reserves. 1999 ACCOMPLISHMENTS w Achieved an OSHA recordable rate for injuries and illnesses of 0. .

with peak total production expected to reach 55. Chevron recently acquired Vermilion Viosca 100 percent working interest in two offset leases. A draft environmental 15. the Rocky Mountains.000 barrels GULF OF MEXICO – SHELF of oil equivalent per day. northwest of Mississippi Canyon 292.600 the substantial leasehold in the Viosca Knoll area. Renewed to determine their commercial viability. subsalt development ronmental impacts were found.000 feet of water) in the Gulf of M e x i c o 10 0 0 ' ' 3000 Mexico.to 20-year field life. Public hearings have located in Mississippi Canyon Block 292. Chevron It is the Shelf ’s largest contiguous leasehold is the unit operator with a 57 percent interest. WORLDWIDE UPSTREAM 13 United States U N I T E D S TAT E S United States exploration and production activities and the accompanying facilities. three exploration wells were V e r m i l i o n 2 1 4 The Vermilion 214 Field was dis- drilled in the Gulf of Mexico deepwater.000 barrels of oil and 60 million cubic feet of gas per day. D E E P W A T E R Typhoon Genesis tion and tie back of four existing appraisal wells to a mini tension leg platform. with three wells currently on production. Dome 56/57 New Orleans ing in the Gulf of Mexico. M I S S I S S I P P I A L A B A M A tion occurred in June 1999.000 barrels D e s t i n D o m e Natural gas was discovered within of oil and 65 million cubic feet of gas per day by mid. The 2001 and 2002 programs will G U L F O F M E X I C O – D E E P WAT E R provide continued exploration and development of G e n e s i s Genesis is Chevron’s first deepwater (2. impact statement (EIS) was issued August 1999 by the governing agencies whereby no significant envi- G e m i n i Gemini is a deepwater. two of which covered in 1971 and has produced 24 million barrels found hydrocarbons. Subsequent development wells which are within 30 miles of BP Amoco’s significant were brought on production in October 1999.000 acres). Further drilling will be required of oil and 142 billion cubic feet of gas. and previous exploratory successes in the trend are put on stream. The platform will support Activity Highlight full production facilities for 40. The project is a subsea develop- reflected both support and opposition to the project. Chevron’s drilling results over the last three years have included six wildcat discoveries and two successful delineation wells. First production occurred in January 1999. Chevron has a 40 percent interest in this project. Texas.400 feet. (approximately 300. three delineation wells . The 2000 program includes one exploration well. in a water been held and comments were submitted that depth of 3. January 2000 total field production of 10. At least six development opportunities were identified with 3-D exploratory wells are planned for 2000. Recoverable reserves are estimated in excess plans to recover the reserves and regulatory of 160 million barrels oil and equivalent gas over the approvals are in progress. late 2000. Development 2000. feet of water) operation in the Gulf of Mexico. ment tied back to Chevron’s Viosca Knoll 900 Platform. Peak production rates of 200 million L O U I S I A N A Pascagoula Pensacola cubic feet of gas and 3. Knoll resulted in two discoveries and continued to center on establishing production from gas reservoirs in the James Carbonate formation. Chevron owns a 100 per- V i o s c a K n o l l Chevron’s 1999 efforts in Viosca cent working interest in Vermilion 214. 214 Knoll G u l f S h e Trend l f T y p h o o n Typhoon is Chevron’s third deepwater Gemini o f development (2. with 1999 Crazy Horse discovery. the Destin Dome 56 Unit in 1996.000 barrels of condensate per Destin day make it one of the largest subsea projects produc. Chevron is the the Development and Production Plan is expected in operator with a 50 percent interest. Initial production Issuance of the final EIS and a regulatory ruling on is scheduled for third quarter 2001. Production is are concentrated in more than 300 fields located in expected to approach 200 million cubic feet of gas per the Gulf of Mexico. day once the infrastructure is completed in late 2000 California and Alaska. Initial produc. Development plans call for a subsea comple. three of seismic data in 1994. Total production is currently 80 million cubic feet of gas per day from four wells. E x p l o r a t i o n In 1999.

federal waters at the southeast end of the Santa rels per day was heavy oil. Projects to test the potential for increasing Chevron continues to participate in the appraisal recovery from the original 2 billion barrels of oil in and delineation drilling in the Prudhoe Bay satellite place continued in 1999. at a total production rate of 70.300 area. includ- heavy oil fields .Alaska. (Diatomite) acquired 33 leases totaling 233.000 barrels of oil equivalent interest in the project. Midway Sunset and ing interest in the Point Arguello Field. as operator. BP Amoco holds a 56 percent interest in the joint lease holdings and Chevron holds the remaining 44 percent. encompasses barrels of oil.000 acres. drilled 82 develop. east of Prudhoe Bay.Kern River. Inc. Bakersfield Elk Hills C A L I F Buena San O Vista Joaquin R Valley N Hills I A Taft Pacific Midway Ocean Sunset Chevron Lease Oil Field . First oil is planned for 2002. Recent drilling programs Barbara Channel. acquired the remaining assets. gas per day. associated Coalinga .000 barrels of oil and 114 million cubic feet of for more than 40 years. Chevron is a leader in low-cost operations in this ALASKA area. Chevron holds an 18 percent averaged more than 19. 75 million cubic feet of gas and 2.000 barrels of 17 injection and two observation wells. developments. Flaxman discoveries. Chevron holds have significantly increased from an early 1998 level a 6 percent to 41 percent working interest in these of 129 million cubic feet of gas per day to over 370 satellite accumulations. fee acreage. in the Dos Cuadras Field.000 acres in the Coalinga Cymric and Kern National Petroleum Reserve .contributed a combined heavy oil produc.000 barrels per day. per day. along with BP Amoco and Phillips. for the Point Thompson Unit gas cycling project are L o s t H i l l s D i a t o m i t e Twenty-one attractive moving forward with first production targeted for primary well locations were drilled in 1999 along with 2005. continue to align their leasehold interests in the Point Chevron’s average interest in three of the unit zones Thompson area.000 barrels per day in 1999. onshore processing facilities. Total gas sales share). along with an oil and gas processing in Cymric heavy oil development helped to con.14 WORLDWIDE UPSTREAM United States CALIFORNIA C a l i f o r n i a O C S Chevron exited offshore S a n J o a q u i n V a l l e y Average production rates California production operations after producing oil for 1999 from the San Joaquin Valley fields were and gas offshore Santa Barbara and Ventura counties 103. The alignment is 23 percent. approximately 73. In July 1999. Occidental Petroleum Company.400 the Point Thompson Unit and the Sourdough and barrels of natural gas liquids per day. Plains duction from the other three San Joaquin Valley Resources Inc. covering more than 450. plant in Carpenteria and nonoperated interest tribute 28. with current net production of 12. Many tracts 60 Miles McKittrick River are on trend with other producing fields. Stable pro. Lost Hills Chevron. Venoco. In February 1999. N o r t h S l o p e E x p l o r a t i o n Chevron and BP Amoco ment wells during 1999 to maintain oil production. These smaller accumulations are expected to yield up to a total of 300 million barrels E l k H i l l s The Elk Hills Field has continued an of recoverable oil (50 million barrels Chevron’s active gas sales strategy in 1999. Production condensate per day. acquired platforms Gail and Grace located in Of the oil production.000 bar. and certain onshore tion rate of 45. with additional total operating costs savings N o r t h S l o p e D e v e l o p m e n t Development plans realized in 1999. million cubic feet per day in 1999.

which faced mechanical tion of Chevron’s Undeveloped Exploration Lands in problems early in the year. Production April 1999. Chevron made significant gas with two wells in 1999. a second Fort Liard well tested in early 2000 showed Hibernia production averaged approximately similar expected productivity. In 1999. including completion of two in the Kaybob area.000 barrels per day of bitu. The project is position in the East Coast. with rates up to in and placed on production in 2000. The wells will be tied 100. Bantry/ Q U E B E C Princess Hebron Virden O N T A R I O WESTERN CANADA U N I T E D Terra Chevron’s Western Canadian operations continued S T A T E S Nova to provide strong cash flow in 1999. Chevron lion cubic feet per day from the first discovery well. 150. indicating recoverable discoveries at Fort Liard. primarily in the area west of of the major growth opportunities in North America. CCR’s net production in 1999 reached its ALB MAN Hibernia SAS highest level in nine years.000 barrels per day. maintained focus on core Wabasca Hu ds o n Jeanne WA N d'Arc NE Simonette FO W areas in western Canada.875 per cent working interest In 1999. The acquisition is approximately 33 percent and supplements the provides Chevron the opportunity to participate in 740.000 barrels per day. Due to increased production from ITO A St. and entered the synthetic B a y UN Basin BA Mitsue D L A ND CHE Kaybob oil business. Chevron owns a 26. Chevron Canada Resources (CCR) continued Fort Liard to grow its significant position in Canada’s East Chinchaga O c e a n Coast offshore region. was appointed operator of the Hebron Field in 1999.000 barrels per day achieved during the latter CCR entered into a business arrangement with part of the year.2 million acres at the Nova Scotia lease sale in base of 1. A high-rate production test drill 16 wells over two years.000 barrels per day in 1999. eries at a 50 percent interest. EASTERN CANADA Chevron’s major development efforts in 1999 The East Coast of Canada continues to provide one focused on natural gas. Kaybob in Alberta and Fort Liard in the Northwest Delineation drilling of the Hebron Field continued Territories. with an option to con- demonstrated the field’s ability to achieve rates of tinue the program in the third year. wells that are among the 20 longest extended-reach OIL SANDS PROJECT wells in the world. manage CCR’s western Canada midstream business Development drilling operations into the Hibernia resulting in a regional partnership with BP Amoco reservoir continued.6 billion barrels of bitumen. CCR produced Chevron Lease 44. Burlington committed to fund and ance improvements. ests in three deepwater parcels totaling approximately men over a 30-year period from an initial resource 1. have resulted in perform- western Canada. . Chevron acquired inter- expected to recover 155. in the Athabasca area.500 barrels per day of crude and natural gas liquids and 227 million cubic feet of natural gas per day from Western Canada. In addition to the 75 mil- reserves in excess of 650 million barrels. a business organization was created to in Hibernia. Chevron has a 180. through acquisition of a 20 percent working interest Chevron continued to grow its offshore lease in the Athabasca Oil Sands Project. exceeding the platform’s right to participate in development of future discov- nominal design capacity of 150.000-acre deepwater Nova Scotia parcel acquired future development of existing Shell oil sands leases in 1998. WORLDWIDE UPSTREAM 15 Canada CANADA N O R T H W E S T T E R R I T O R I E S A t l a n t i c In 1999. John’s ERT K AT Calgary C A N A D A Hibernia. which are estimated to be able to support three additional projects similar in size to the planned project. The Hibernia reservoir continued Chevron entered the synthetic oil business in 1999 to deliver high reservoir quality and well productivity. Recent modifications to the gas Burlington Resources to explore a significant por- compression equipment. Chevron’s interest in these three blocks start-up is scheduled for late 2002.

one partially completed and design work com- under a joint venture arrangement with the pleted on the remaining one (scheduled for comple- Nigerian Government through the Nigerian National tion in 2001). Ghana. cubic feet per day. holds a 20 percent rels per day. the Department of Petroleum E s c r a v o s G a s P r o j e c t Construction of Escravos Resources renewed all seven of CNL’s onshore and Gas Project Phase 2 is well under way and scheduled swamp area concessions for a second 30-year term. Liquefied petroleum gas (LPG) Another subsidiary. which will take place in 2000. OML-53 Warri Port C A M E R O O N E x p l o r a t i o n CNL acquired 224 square miles of Harcourt 3-D seismic data in onshore OML-53 and plans to OML-89 acquire an additional 166 square miles of 3-D seismic OPL-222 data during 2000. condensate exports could increase to 40. Societe Beninoise de Gaz. and expand the gas processing capacity to 285 million renewal efforts will begin soon. It is expected with the necessary approvals Limited (CPNL). CNL plans to drill six wells in A t l a n t i c O c e a n OML-53 and two offshore wells in OML-89. in one deepwater Niger Delta block and three inland Benue Basin blocks operated by Elf. Preliminary design for Phase 3 of the interest in six concessions.000 acres. Escravos Lagos commercial operations may commence by late 2002. and Jalingo Societe Togolese de Gaz. covering 600. .16 WORLDWIDE UPSTREAM Africa AFRICA P r o d u c t i o n Total 1999 production from the 33 NIGERIA CNL-operated fields averaged 420.000 barrels of Chevron’s principal subsidiary in Nigeria. approximately 45. A sole interest is G a s . Maiduguri W e s t A f r i c a n G a s P i p e l i n e P r o j e c t CNL Warri was appointed the Managing Sponsor of a consor- Mefa Escravos Bauchi Awodi tium that includes the Ghana National Petroleum Meji Jos Corporation. Opolo Meren Delta Abiteye Okan Delta S. gas project could add a second train and expand gas operated by Texaco (20 percent). Petroleum Corporation (NNPC). a 40 percent interest in 11 concessions totaling 2. Chevron Oil Company and condensate exports will increase to 14. During 1999. for completion in second quarter 2000. Chevron Petroleum Nigeria per day. 14 platforms upgrades had been com- offshore regions of the Niger Delta. NNPC / Chevron (CNL) JV NNPC / Texaco / Chevron (COCNL) JV CPNL participated in one exploratory well in the Oil Field Elf / Exxon / Chevron (CPNL) JV Benue Trough (Elf-operated) during 1999. Promising results from this work and the necessary approval could lead to continued Omuro Ojumole development during 2000. Nigeria and Togo to construct and I N I G E R I A operate a gas transmission pipeline between these N countries. The proposed 30. predominantly in the swamp and near. operates and holds began in April 1998 continued throughout 1999. OPEC production curtailment that Chevron Nigeria Limited (CNL). which owns the Total production from the COCNL fields averaged remaining 60 percent interest in the operation. year-end 1999. Subject to successful negotia- B tion of concession conditions with the governments. liquids per day. LPG and remaining 60 percent interest in the operation. oversees and manages new venture the project could enter front-end engineering and projects in Nigeria.000 barrels of oil per day in 1999.3 CNL continued upgrading its facilities. CPNL has a 30 percent interest design in 2000. Phase 2 will CNL’s four offshore concessions expire in 2008. a gas-to-liquids (GTL) plant proposed for construc- tion in Escravos.000 barrels A third subsidiary. Nigerian National Petroleum Corporation.L i q u i d s P r o j e c t Feasibility engineering also held by CPNL in six other Benue Basin blocks and technical evaluations are nearing completion for through a production-sharing contract.000 bar- Nigeria Limited (COCNL). Shell.t o . CNL operates pleted. CPNL also Chevron (CPNL) Sole Venture began site preparation work for the drilling of the Benue Trough obligation well (Chevron 100 percent). and by million acres. This consortium was granted development rights by the governments of N Benin.000-bar- Aroh N I G E R West Isan Gbokoda rels-per-day Escravos project is expected to be the Mina Isan Parabe-Eko Ewan first of a previously announced GTL globalization Malu Mejo Dibi Makaraba Tapa effort by Chevron and SASOL. NNPC owns the processing to 680 million cubic feet per day. Legal and commercial structuring of this E venture is under way.

Lomba and the southern part of the Nemba Field have undergone the initial stages of development and are currently on production. For Area C. Area MARINE IV C production averaged 38.000 barrels per major fields. Djeno t MARINE VII Terminal D e v e l o p m e n t – B l o c k 0 In Area A. Phase 1A and 1B. Blocks 0 and 14.000 barrels per day. Crude oil production during 1999 averaged 460. produce approximately 110. Pointe-Noire Malongo Area. The Ndola and Sanha fields are currently on production. In Area B. t Moho MER Takula Installation of new waterflood projects in the Malongo i Bilondo Malongo Terminal Kungulo and Vuko fields progressed. additional infill well opportu- n East nities are envisioned for the Kokongo and Nemba Chevron Interest Oil Field fields in 2000. in which on December 15. The Banzala Field achieved first pro- Wamba n ANGOLA duction in August 1999 and increased to a rate of Nkossa Nsano HAUTE Banzala (CABINDA) 20. WORLDWIDE UPSTREAM 17 Africa Area C includes seven major fields. is a 1. up from an average of A 421.000 barrels of Cabinda exclave. Development drilling in Sanha is in progress and will be completed in the first quarter of 2000. also participate in Nigeria’s deepwater and ultra.000 barrels per the Takula Area. concession adjacent to the Cabinda coastline in which CABGOC has a 39.2 percent interest.100-square-mile oil equivalent per day. is the operator of two conces- would have this project onstream in 2003/2004 and. Area B includes six major fields. 32 develop- Kitina ment wells were completed in 1999. off the coast of Angola’s at its peak. sions. and ten were in the a Kitina S. which is expected to take place continue into early 2000. the Ndola Field is also being evaluated for future development. e Sanha DRC AREA C Areas B and C continue to be the primary areas a Libwa of major new development activity in the Block 0 BLOCK 14 Tshiala concession. The southern extension of in 2000.000 in 1998. barrels of oil per day for the remainder of the month. Production from the initial phases.000 barrels per day in 1999.000 barrels of oil per day C O N G O in 1999. Fifteen of the Area A fields are day during the first half of 2000. coupled with ongoing reservoir O Benguela Belize management and the continued application of appro- Kokongo BLOCK 0 c Landana priate new technology. CPNL will day of production by 2002. currently producing. In the Takula Lomba Numbi c Nemba Vuko Field. 13 in the Malongo Area and 10 in day in 2000.560-square-mile deepwater tion in Angola from Chevron’s Kuito Field commenced concession located west of Block 0. Twenty-two l Sounda wells were in the Takula Area. The implementation of a major gas ANGOLA utilization project in Area C (Sanha Condensate/ Chevron’s subsidiary. the Sanha Field drilling program will deepwater bid round.000 barrels of oil per day through nine wells. Current plans Limited (CABGOC). 1999. These projects. . Block 0 is a 2. acquired in 1995.000 barrels per drill one well in OPL 222 during 2000. Cabinda Gulf Oil Company Bomboco Project) is being studied. The Kokongo. Block P r o d u c t i o n – B l o c k 1 4 First deepwater produc- 14. North Nemba develop- in excess of 360 square miles of 3-D seismic data and ment drilling is expected to add 42.000 CABGOC has a 31 percent interest. Area B production averaged 102. Production averaged 30. P r o d u c t i o n – B l o c k 0 Area A includes 23 is expected to average more than 70. and peak at over 100. the application of multilateral well technology Kuito AREA B Kungulo Limba has proved the economic potential of the Mesa reser- Bomboco AREA A voir. Future development plans also include installation of the North Nemba production and gas D e e p w a t e r E x p l o r a t i o n CPNL plans to acquire injection platform in 2001. are critical to maintaining Ndola production levels in Area A.

averaged 74. with primary objectives. though exploration targets remain from the Haute Mer 3-D significant reservoir sands were encountered at all survey. and expects to finalize acquisition of a in 1999. Chevron E x p l o r a t i o n Approximately 95 percent of the has a 30 percent interest in Haute Mer. No exploration wells were drilled in D e v e l o p m e n t The Haute Mer license includes the Areas B and C in 1999. development of Kuito Field. All licenses are partner-operated. The Benguela and rels per day in 1999. are planned for 2000. adjacent to Chevron’s concessions in Angola ment drilling activity. D e e p w a t e r E x p l o r a t i o n – B l o c k 1 4 Two exploration wells were drilled in deep water in D e e p w a t e r E x p l o r a t i o n A number of tertiary Block 14 in 1999. further appraisal infill well. Project authorization is targeted for the first ment work. interest in Marine VII Kitina and Sounda Exploitation Processing of the new seismic data was completed permits. Further develop- rently. Chevron has interests in three license areas (Haute Mer. Both wells were dry holes. there was no develop- Congo. including gas injection facilities and an half of 2001. The first is the Tomboco interest in the concession.B l o c k 0 The 1999 exploration and gas injection wells. These prospects are under evaluation. through its wholly owned subsidiary Chevron Oil The exploration program in 2000 includes three Congo (DRC) Limited. In Haute Mer.000 barrels of oil one well being drilled from an existing well jacket. Belize fields. but the North Congo Canyon 3-D the coast of Democratic Republic of Congo (DRC) data processing was completed in 1999. Appraisal well drilling and exploration the Kitina Field continued and total production aver- of surrounding prospects are being conducted concur. one exploration well expected to be drilled in 2000. and study is required prior to development planning.650 barrels per day in 1999. Benguela and Belize. The well was successful and resulted in immediate production. Moho and Bilondo discoveries. For the Landana Field. discovered in 1998. P r o d u c t i o n Crude oil production from eight off- REPUBLIC OF CONGO shore fields averaged 17. and appraisal well program in Area A consisted of operated by Elf Congo. Additional leads in blocks 14 were matured into D E M O C R AT I C R E P U B L I C O F C O N G O prospects during 1999. Development plan- ning for these fields continued at year-end. are adjacent to the In the Marine VII permit area. Chevron has a 50 percent exploration/appraisal wells. 15 percent interest in Mer Profonde Sud in 2000. 1X well that will spud in 2000.000 bar- Landana. No additional 3-D seismic Chevron operates a 390 square-mile concession off data was acquired. development of the Nkossa Field continued with the drilling of additional production E x p l o r a t i o n .25 percent concession is now covered with 3-D seismic data.Kuito. Marine VII and Mer Profonde Sud) in offshore D e v e l o p m e n t During 1999. sions in the Republic of Congo averaged 29.18 WORLDWIDE UPSTREAM Africa D e e p w a t e r D e v e l o p m e n t – B l o c k 1 4 Four P r o d u c t i o n Net production from Chevron’s conces- fields have been discovered in Block 14 . aged 36. Total production in the field. (Cabinda). and LPG per day in 1999. 29. and interpretation will commence in 2000.000 barrels of oil per day. . The Chevron-operated Marine IV license was relinquished in 1999.

Alba First production using the existing Britannia facilities Chevron Lease Gas Field Oil Field is expected around 2004. A new gas pipeline was laid from Alba to the nearby N O R W AY Britannia Platform to optimize use of gas resources. Ultimate recovery of PL 182 proved reserves increased in 1999 from 4 billion barrels to 4. Both wells encountered hydrocarbons. Chevron’s interest in the Statfjord Field is 4. to proceed with the evaluation of this area. Plans are also A gas export pipeline project is currently under being formulated to develop the extreme southern way and the new pipeline is expected to be commis- part of the field. evaluated. Chevron participated in drilling Chevron holds interests in four producing fields off- two exploration wells that are currently being shore United Kingdom and Norway – Alba oil field. A l b a P r o d u c t i o n Total production from the Alba Discussions with partners are in progress on how Field averaged 74.7 billion application. the field has produced about 24 percent of the years. the gas will support Alba’s power requirements. which could lead to a project sanction D R Shetland Nor t h decision in 2001. Block and license awards are expected to barrels of oil to date and continues to produce be announced around mid-April 2000. applications for blocks in the Norwegian Sea. significantly 1999 averaging 209. Chevron’s interest is 19. which includes the mately 3 trillion cubic feet of gas and 132 million Chevron-operated license PL 157. and non-operated Significant 3-D interpretation work has been interests in Statfjord and Draugen.42 percent.2 billion barrels through increased confidence in reservoir performance. first oil could occur in O E Islands 2004. A sixth Interpretation of seismic surveys resulted in platform production well has been successfully identification of drilling opportunities in the devel- completed to allow the plateau production to be oped part of the field. WORLDWIDE UPSTREAM 19 Europe development in October 1999. million cubic feet of gas per day (up to 8 percent of but quantities were insufficient for commercial the U.000 barrels of oil per day in 1999. Chevron S t a t f j o r d P r o d u c t i o n After 20 years of produc. B r i t a n n i a P r o d u c t i o n First full-year production E x p l o r a t i o n Chevron participated in two explora- since commissioning has proved to be a significant tion wells in an area around the Draugen Field in success.17 percent.35 billion barrels of oil originally in place. If approved. Statfjord has produced almost 3. with production in a disposal route for Alba’s surplus gas. will be transported to market. Interpretation work in the mid-Norway area The field has an expected 25-year life and enabled Chevron to rationalize its holding of non- contains estimated recoverable reserves of approxi- prospective exploration acreage. the field produced 740 mid-Norway. commissioned in March 1999. Chevron’s interest in the Draugen were successfully drilled in 1999 and further Field is 7. Chevron’s interest in the Alba Field sioned in 2000 when associated gas and gas liquids is 21. per day of condensate.000 barrels per day.000 barrels of oil per day. Four of these opportunities maintained. North Sea.K.000 barrels development. At peak demand. 1. PL 158 Draugen C l a i r P r o j e c t Improvement in the oil price N Y PL 156 environment has bolstered plans for a commercial A E PL 176 development of the complex Clair asset. In EUROPE the U.2 percent announced the 16th Licensing Round. has been reviewing acreage in order to prepare an tion. Chevron has a 30. gas market) and in excess of 45. Britannia gas condensate field. 3-D seismic surveys have been merged to provide a single data- base to identify new opportunities in this area. undertaken over an exploration license located UNITED KINGDOM AND IRELAND within the Porcupine Basin offshore Ireland.84 percent. inviting interest and shares operatorship with Conoco. approximately 210. drilling will continue through 2001. Additionally.K. To reducing the amount of gas being flared. In later date. N S ea W N e w V e n t u r e s a n d E x p l o r a t i o n Chevron has Britannia consolidated its position in the Britannia core area by S U NI TED KI NGD OM acquiring 25 percent equity in Block 21/3a (Spectre). The government barrels of condensate. Work plans W Statfjord Clair are in place. provides ued to perform above expectation.56 percent. First oil was produced from the Statfjord North Flank subsea . D r a u g e n P r o d u c t i o n The Draugen Field contin- This pipeline.

is awaiting hook-up Indi an J A V A Darajat NEW Block G U IN E A and commissioning. The giant Minas Field. with Chevron’s interests injection in late 2000.7 percent in the North West (CPI) and Amoseas Indonesia (AI). CPI manages all of these interests for Chevron. the Western Australian domestic gas market. Chevron’s net share of total production Browse Basin averaged 182. Bangko and Kotabatak fields. Currently nine of 13 phases are the northern Browse Basin and three new deepwater under steam injection. accounts a n Island Dampier for about half of Indonesia’s total crude oil produc.000 barrels Phase 1 was completed with first steam injection in per day of condensate. PT Caltex Pacific Indonesia major joint ventures: 16. n d i I tion. CPI.000 barrels per day Barrow LNG Plant in 1999. has produced more than 4. The waterflood expansion to the Project area is located about 1.2 billion barrels of oil N o r t h W e s t S h e l f P r o d u c t i o n The NWS since inception.T. with injection major utilities in Japan. The field. as a contractor to Pertamina. The Darajat reservoir has proved reserves of steam to generate 350 MW for 30 years. CPI is continuing to develop new waterflood projects and expand existing projects in the Bekasap. Chevron Lease Gas Field Oil Field under steamflood since 1985.000 barrels per day. About 1 billion cubic feet of the first quarter 1999.20 WORLDWIDE UPSTREAM Asia Pacific THAILAND P H I L I P P I N E S G e o t h e r m a l A c t i v i t i e s AI’s geothermal field P a c i f i c continued to provide steam to the national power MALAYSIA company. plant to produce electricity for the Natuna Central Sea MALAYSIA O c e a n Java power grid.5 areas. Perth and 70 to 90 miles offshore. (WAPET) operated Chevron holds interest in four production-sharing permit areas. Negotiations are under way to TI M OR expedite start-up of power sales from Darajat II.7 percent to 25 percent. AI is a power generation WAPET Perseus Lambert company that operates the Darajat geothermal Goodwyn Geryon Cossack contract area in central Java and has a cogenera. also in the Rokan Block. Chevron owns Shelf (NWS) Project and 25 to 50 percent in the West 50 percent of both companies. The Darajat K A L I M A N TA N S U M AT R A II 70 MW power plant – owned and operated by AI I S U L AW E S I N D IRIAN and its national partner. Wanaea NORTH tion facility under construction in support of CPI’s Dionysus WEST Orthrus Chrysaor operations. The plant operated at its 55- Sumatra Blocks megawatt (MW) capacity during the year. although very gas per day was sold primarily under long-term con- preliminary. In addition. . O cea n Further expansion of the Darajat geothermal Chevron Contract Areas reservoir complex is planned. ASIA PACIFIC INDONESIA AUSTRALIA Chevron’s interests in Indonesia are managed by Chevron’s primary interests in Australia involve two two affiliate companies. Balam South. completed in 1999. P. Construction on a tract in the form of liquefied natural gas (LNG) to surfactant field trial is also complete. Australian Petroleum Pty Ltd. In addition. Area 10 is the offshore Canning Basin. The Duri Field in the Perth Rokan Block contains medium heavy crude difficult to produce using traditional techniques. Chevron has interests in contracts in Indonesia.000 miles north of northwest area of the field was completed in 1999. O c e Gorgon duction averaged more than 745. with total production averag- exploration permits which were recently awarded in ing 280. Thevenard Island Map Area C P I S u m a t r a P r o j e c t s CPI continues to imple- A U S T R A L I A ment enhanced oil recovery projects to extract more oil from its existing reservoirs. Construction of the Light Oil Steamflood billion cubic feet of gas per day and 100. have been encouraging. Darajat Geothermal O N E S I A J AYA PAPUA Indonesia. PLN. The remaining gas is sold to scheduled for the first quarter 2000. SHELF West Tryal Rocks a n P r o d u c t i o n Total CPI crude and condensate pro. near the North West currently under development and will be placed on Shelf joint venture acreage. varying from 16. Average total field CPI continues to pursue tertiary recovery projects for production from the giant North Rankin and Minas and other light oil fields in its operating Goodwyn gas/condensate fields during 1999 was 1.000 barrels of oil per day in 1999. is the largest steam- flood in the world. Results to date.

in licenses Gorgon gas field. Thevenard Island. Significant progress was made during 1999 on D e v e l o p m e n t First phase development work in defining low-cost development concepts for the giant the Gobe Petroleum Development Project. ALNG markets uncommitted gas to new Asian P a c i f i c PDL-2 PPL-161 markets outside Japan. Both dis- full field development is expected to produce 24. percent interest in the Petroleum Development License (PDL-2) that includes the Kutubu Field and a 45 percent interest in the Moran Field. WAPET made a minor oil discovery. Moran oil is processed and exported through the west of the NWS fields. Chevron holds a 19.800 barrels per day.800 barrels of oil per W A P E T P r o d u c t i o n WAPET operates two major day on an extended well test (EWT) program to gain production facilities on Barrow Island and reservoir information for full field development. agreement of commercial terms. All produced gas opment work with water injection being increased on is returned to the producing formation for pressure Barrow Island and a number of development wells maintenance and energy conservation. Chevron continued to pursue the Coaster. WORLDWIDE UPSTREAM 21 Asia Pacific In 1999. The where Chevron has a 25 percent interest. approximately 100 miles south. Total WAPET oil production Kutubu system.38 percent interest in Gobe Main and a 10. development wells and reserves to be marketed by the ALNG agency. In addition. PPL-101 Kutubu NWS Partners formed Australia LNG (ALNG) in Moran Project 1999 to act as a single marketing vehicle for selling Fields S o u t h LNG. continued in 1999 with a combi- Gorgon participants for incorporating their gas nation of sidetrack redrills.4 India and Taiwan. focusing on Korea.000 barrels per day in 1999. China. are located in permit area WA-267-P. Geryon to develop the Moran Field on a unitized basis with and Orthrus.000 barrels P’nyang per day.000 barrels per day. tion from Moran averaged 11. During 1999. Discussions have commenced with PDL-3 and PDL-4. total production from the Wanaea/ Cossack and Lambert field. Chevron also holds a 19. The oil is processed Skate fields on Thevenard Island. N E W Late in 1999. PDL-2 and PPL-138 participants agreed Western Australia in 1999. while produc- cial terms. workovers. P A P U A PDL. recovery of substantial quantities of natural gas Moran and Gobe oil fields.65 percent in South East Gobe through partici- pation in PDL 3 & 4. This project will allow PA P UA N E W G U I N E A commercialization of stranded gas reserves and Chevron Niugini Limited is operator for the Kutubu. Chevron designated the Moran Unit operator. Ltd. LPG production driven by the liquids-rich gas was 19. Roller and averaged 17. ALNG was successful in executing G U I N E A a Memorandum of Understanding with Tuntex Gas Export Pipeline Port Moresby Corp.500 barrels per day. These Chevron Lease Gas Field Oil Field agreements could lead to significant LNG sales but are dependent on these potential buyers’ success in P r o d u c t i o n Production from Kutubu averaged developing markets and parties agreeing to commer- 41. The Kutubu and Gobe oil production is con- W A P E T D e v e l o p m e n t WAPET continued devel- strained by gas reinjection capacity. Production from Gobe Main aver- in 1999 averaged 30.000 coveries increase the reserves available for future barrels per day beginning in third quarter 2001 upon LNG conversion.700 barrels per day and South East Gobe from Barrow Island and the Saladin. being drilled on both Barrow and Thevenard Islands. The Moran Field straddles the license boundary W A P E T E x p l o r a t i o n The WAPET joint venture of PDL-2 and Petroleum Prospecting License made two significant natural gas discoveries offshore (PPL)-138. principally aged 16. Guinea to Queensland. of Taiwan and a Heads of Agreement with Gobe India’s Al Manhal International Pty.38 liquids (NGL). The decrease Juha in oil production during 1999 is attributed to a major PPL-101 refit of the floating production vessel. Kutubu system. averaged 35. Chevron's share at a joint Gobe facility and exported through the of production was 7. Both discoveries. .900 barrels of oil per day in 1999. close to existing infrastructure in the Australia Gas Pipeline Project from Papua New Thevenard Island area.

the HZ/21-1SS. P r o d u c t i o n Chevron has a 16. Chevron potential field. This. An eight-well interest in adjacent exploration blocks 7.34 percent interest in Gulf of Thailand Block B8/32 on March 17. Applications filed 02/31 Beijing in 1998 for Petroleum Retention Licenses for the Block P’nyang and Juha gas discoveries in PPL-101 are 06/17 Shengli Field Bohai Gulf also expected to receive approval in early 2000. with a record peak S o u t h production of 124. exploration program is planned for 2000 in southern which are currently inactive pending resolution of a Jarmjuree as well as other areas not yet converted Thailand-Cambodia border dispute. where Chevron holds the plans a waterflood start-up in August 2000. Three wells pro- duced at a combined rate in excess of 30. Chevron also holds a 33 percent covering the northern Jarmjuree trend.000 barrels of oil per day and 85 million Block 06/17.22 WORLDWIDE UPSTREAM Asia Pacific E x p l o r a t i o n Chevron submitted both a proforma License Extension application and a preferred Top Daqing Field File proposal for PPL-161 (APPL-219) for which Block approval is expected in early 2000.33 percent interest Hong Kong Block 16/08 in the producing block 16/08 in the Pearl River Mouth HZ/21-1 Block Basin. Maliwan to firm up new platform sites and develop- THAILAND ment plans. HZ/32-5. Chevron completed prospect mapping and D e v e l o p m e n t Significant additional exploration plans to drill wells to test two different pre-tertiary and development potential exists in Block B8/32.66 percent interest in the 734. Additional applications of subsea completions Benchamas. 1999.600 barrels of oil per day. 06/17 and Zhanhuadong) in the Bohai Gulf area of the North China Basin. 62/23 and 63/15) CAMBODIA TH A delineation drilling program is planned in 2000 for were released. 8 and 9. A Three exploration blocks (50/20. Zhanhuadong E a s t PDL-3. Bangkok N D prospects commencing in 2000. cessful drilling. both of which were 1999 and was producing at a rate of 77 million cubic not successful. deep rights beneath the massive Shengli Field oil complex. 1999. to PLAs. the Tantawan Field technology are planned for 2000 in the new HZ/26-1 was producing at a rate of 65 million cubic feet of gas North Field and being considered for another new per day and 9. With the suc- of Limited. combined with area drilled in the western portion of Block B8/32 in acquisition of a majority interest in Palang Sophon November 1999 discovered more oil and natural gas Gulf than previous Jarmjuree area wells. Chevron plans to complete the feet of gas per day and 13. Chevron is planning to submit an Thailand ship of Block B8/32 from Pogo Producing Company application for a Production License Area (PLA) Activity Highlight on October 1. S e a The newest field in the group. C h i n a CHINA C H I N A S e a Chevron has an interest in two blocks (16/08 and 16/19) in the South China Sea and three blocks (02/31. PDL-4 and PPL-161 (APPL-219) commenced Block in the fourth quarter 1999. . Chevron assumed operator. utilizing subsea completions tied back P r o d u c t i o n Block B8/32 is currently producing oil to existing production facilities – the first ever in and natural gas from two fields.000 barrels of oil per day in the C h i n a final week of the year.000 barrels of oil per day. gave Chevron a 51. cubic feet of gas per day in early 2000.000 barrels of oil per day contractual commitments in 2000 by drilling two as of December 1999. with production start-up expected in late 2001. was Chevron Lease Oil Field brought on stream early in 1999.000-acre block. E x p l o r a t i o n Chevron drilled two exploration Benchamas Field was brought on stream in June wells in the Bohai Gulf in 1999. Chevron is The North China Basin also extends onshore onto completing a production well drilling campaign and the Zhanhuadong Block. increased its focus on oil production from the field through an aggressive well intervention program.600 16/19 HZ/26-1 HZ/32-2/3/5 barrels of oil per day in 1999. Five fields produced an average of 101. Complex A seismic program with components in PDL-2. Tantawan and China. Chevron acquired Rutherford-Moran Oil Corporation E x p l o r a t i o n An exploration well in the Jarmjuree B8/32 and its 46. Development planning is under way for Maliwan A IL Field. Production from the field more exploration wells on Block 02/31 and one on reached 25. In December 1999.

The concession is located adjacent to renewed in 1998 for a second three-and-a-half-year the Shah Deniz gas and condensate field discovered term. One or two exploratory wells are began in November 1999. the principal reservoir in Qatar’s giant Dukhan from the Korolev Field. The agreement calls for Chevron to loan tech- in 1999.000 that will be drilled in 2000.100 square miles. The approximately 260. averaging 214. AN Black In 1999. The prospect fills a significant portion transfer of technology. the CPC pipeline will exploration results and the generation of a prospect allow for the export of an initial capacity of 600. It provides TCO with additional two obligation wells in the second half of 2000. Drilling of the first of five obligatory wells will begin in 2001.5 billion. oil field. Chevron is negotiat- TCO is nearing completion of a three-year plant ing with SOCAR. offshore concession in the Azerbaijan sector of the This agreement. CPC remains on schedule scheduled for drilling in 2000. Chevron signed a Production-Sharing CPC moved aggressively into the design and Agreement with the state of Bahrain to explore for construction phase during 1999. barrels per day with the additional pump stations and tankage. encompassing approximately farm commenced in May 1999 while pipe laying 2.000 barrels per day. The Tengiz Kropotkin UZ Field is one of the world’s largest super giants with BE Novorossiysk Komsomolskaya K A Z A K H S TA N estimated recoverable reserves of 6 billion to 9 billion KI Caspian ST barrels. the development of Kuwaiti of the 160 square-mile block in water depths of about employees and the modernization of Kuwait’s oil 1. Chevron has a 15 percent ownership BAHRAIN interest in CPC. Tengiz AZERBAIJAN EN T U R K M E N I S TA N IA crude is transported by a variety of means. Chevron holds 100 percent 1999. . including T U R K E Y AZ Absheron ER . Chevron has a 45 percent interest in TCO. Chevron is currently operating the explora. rail and barge.000 barrels per day by 2010. drilling contractors and other oper- expansion project that will increase production to ators to gain access to a semisubmersible rig.000 barrels per day. Chevron assembled an inventory of Tengiz reservoir. Construction at the marine terminal and tank interest in three blocks. processing and export facilities. in the Jurassic Arab forma- drilling rigs by mid-2001 and initiate production tion. The five-year Exploration and C a s p i a n P i p e l i n e C o n s o r t i u m The Caspian Production Sharing Agreement covering the 4. and is near the producing fields of Guneshli. The TSA allows Chevron a presence in tion work program and it completed the interpretation Kuwait to demonstrate the company’s technology. the Russian Black Sea coast at a projected cost of work in 1999 focused on evaluation of previous $2. Material orders for oil in Bahrain offshore waters with an initial four- long-lead items were placed in late 1998 and early year exploration period. Chevron has a barrels of oil per day. expandable to 1.5 million 60 percent interest in the block. Principal destinations include the Black Sea ports of Odessa.600 feet. WORLDWIDE UPSTREAM 23 Caspian Region and Middle East CASPIAN REGION U K R A I N E R U S S I A N K A Z A K H S TA N Atyrau T e n g i z c h e v r o i l The Tengizchevroil (TCO) F E D E R A T I O N Korolev partnership formed in 1993 covers the Tengiz and Tengiz Korolev oil fields in western Kazakhstan. industry. Crude production exported by railcar reached new highs in 1999 averaging 161. crude oil export pipeline from the Tengiz oil field to For Chevron’s interest in offshore Block 1NW. total liquids production from the Tengiz Sea G E O R G I A Sea Field increased for the sixth straight year. first established in 1994. its employees’ abilities and Chevron's overall commit- ment to the region. Feodosia Joint Venture Areas Oil Field Existing Pipelines Proposed CPC Pipeline and Batumi. TCO also plans to add two new leads for onshore Block 2.000 barrels per day by the fourth current expectation is to begin drilling the first of the quarter of 2000. In 1998. The goal is to grow this pro- AR Baku M duction to 700. to deliver first oil by July 2001. TCO is currently conducting feasibility studies on the next major MIDDLE EAST expansion project with an expected 2004 completion Q ATA R date as well as the reinjection of sour gas into the During 1999.000- Pipeline Consortium (CPC) was formed to build a square-mile block was ratified in June 1998. When completed. K U WA I T AZERBAIJAN Chevron currently has a Technical Service Chevron has a 30 percent interest in the Absheron Agreement (TSA) with Kuwait Oil Company (KOC). of a 3-D seismic survey in 1999. pipeline. nical and professional employees to KOC for the Chirag-Azeri. or 77 percent of the total. was Caspian Sea.

Chevron holds a 27 percent interest in the project. BC-20 A 14 percent interest in Oldeval. Peru.500 barrels of oil per day at the end of 1999. The field was producing 12. properties in the Neuquén and CO LO M B I A San Jacinto Austral Basins were producing at combined net rates of 58. Chevron will Services Agreement.A. wells. A t l a n t i c S. New oil and gas discoveries in 1999 increased proved reserves to more than 200 million barrels oil equiva- BRAZIL lent. Castilla and Chichimene during a six-month transi- S. beginning of 1999.24 WORLDWIDE UPSTREAM South America ARGENTINA Boscan Chevron acquired Petrolera Argentina San Jorge. Chevron took over early 1999. Cubarral O c e a n At year-end 1999.(PDVSA) formed an alliance in 1995 to further tion period in 2000. These program consisting of seismic acquisition and facilities. the field was producing 105.000 In September 1999. The Cubarral Association Contract under which these fields are operated SOUTH AMERICA expired at the end of January 2000. Chevron took private oil field operator in Venezuela in terms of over a 50 percent interest in the 288. in September 1999 establishing a strong LL-652 VENEZUELA exploration and production position in Argentina. was also part of the acquisition. The LL-652 objective is to substan- tially increase production over the next few years through the application of secondary recovery tech- nologies. a major export ARGENTINA pipeline from Neuquén producing fields to the Brazil Salt Basin Atlantic coast. Interpretation of the geologic and seismic operations and production of the Boscan Field in data did not support drilling a well. San Jorge’s interests included 5 million acres of exploration BCUM-100 licenses in key petroleum basins in Colombia.000 barrels per day for first well is expected to be drilled in late 2000. BRAZIL L L . An initial baseline production of won rights to partner with Petrobrás in a 50/50 8. Chevron agreed VENEZUELA to provide operating and maintenance services for B o s c a n Chevron and Petroleos de Venezuela. Chevron Field operation. production was subse.400 barrels per day was agreed upon with PDVSA exploration venture in two offshore deepwater in accordance with the terms of the Operating blocks in Brazil’s prolific Salt Basin..000 barrels of oil equivalent per day. Chevron held a 50 percent interest in Chevron Lease the Castilla and Chichimene fields producing 30. develop the Boscan oil field and provide heavy crude Chevron completed the acquisition of 125 miles of oil to Chevron in the United States through several 2-D seismic in the Galeron Exploration Block in independent supply agreements. will enable optimization of the reservoir man- agement plan through repressurization by water and gas injection. combined with additional development drilling will be conducted in 2000.000 barrels of oil per day.A. COLOMBIA Chevron has actively participated in oil exploration Austral Basin Leases and production operations in Colombia for 75 years. The quently constrained to 92. much of 1999 due to Venezuela’s OPEC restrictions.6 5 2 In May 1998. through the acquisition of barrels of oil per day. the consortium completed the fabrication. . Ecuador. Chevron took over the LL-652 Following a proposal in December 1999. making Chevron the largest Petrolera Argentina San Jorge.300 acre San daily production. Jacinto Block in the Upper Magdalena Basin. S. In addition to the Argentina acreage. However. An exploration evaluation facilities and two satellite wellhead structures. At the Block was relinquished in February 1999. join Petrobrás in exploring Block BC-20 in the In 1999. Campos Basin and Block BCUM-100 in the installation and commissioning of central processing Cumuruxatiba Basin. At year-end. Bolivia and Chile.A. and the Galeron 1996 under an Operating Services Agreement. Additional sales through the Transandino pipeline to Neuquen Basin Leases the Pacific coast make San Jorge Argentina’s second- largest petroleum exporter.

A merger between Dynegy and Illinova Corp. w Commenced construction on three natural gas–fired. w Created a new division. Texas. the United Kingdom and Canada. and is also one of the largest processors of natural gas in North America.S. Dynegy Energy Services. 1999 ACCOMPLISHMENTS w Announced and completed construction of the Rocky Road Power Plant. w Announced plans to construct an 800 MW natural gas–fired. was completed in February 2000. refineries and chemical plants.8 billion cubic feet per day. The company has interests in power plants with more than 14. a Midwest utility. Dynegy and Chevron have entered into long-term.000 barrels per day. is one of the country’s leading marketers of energy products and services. and a 155 MW expan- sion to Dynegy’s CoGen Lyondell Power Plant in Houston. combined-cycle generating facility in Phoenix. and processing and transportation of natural gas and natural gas liquids. Chevron contributed an additional $200 million of equity. before the 1999 peak summer season. w Completed the sale of certain nonstrategic East Texas natural gas gathering. The financing is the first of its kind in the new deregulated electricity environment in California. Arizona in partnership with SRP and NRG Energy. All of these plants are scheduled to be in service before the 2000 peak summer season. the company provides a broad range of energy solutions to its customers in North America. independent power generation and gathering. Dynegy is the leading natural gas liquids marketer. Through its leadership position in energy marketing.000 megawatts of domestic generating capacity. power and coal centered on the control and optimization of related assets. . with sales in excess of 440. The merger with Illinova provides Dynegy with the means by which its convergence strategy can be accelerated. simple-cycle peaking facilities including the 800 MW Rockingham Power Plant in North Carolina. B U S I N E S S S T R AT E G I E S Dynegy’s energy convergence strategy is to maximize the value of marketing. Announced plans to construct a 500 MW natural gas–fired peaking power plant in Kentucky.4 million retail customers.000 NGL barrels per day. Louisiana. with production of more than 120. w Sold less strategic assets from both Dynegy and Illinova. peak-demand power generation facility outside of Chicago. Dynegy is one of the leading natural gas marketers in North America. that will develop and execute the company’s retail strategy following the Dynegy-Illinova merger. trading and arbitrage opportuni- ties in natural gas.. thereby reducing the size of the new equity offering from up to $500 million at the time of the announcement to approximately $250 million. WORLDWIDE UPSTREAM 25 Dynegy Inc. w Completed financing on West Coast Power LLC. DYNEGY Dynegy Inc. Began construction on an additional 100 MW expansion to the Rocky Road Power Plant to be completed before the 2000 peak summer season. resulting in an ownership level of approxi- mately 28 percent in the combined company. The merger resulted in a company with a total market capitalization in excess of $6 billion upon formation. the 500 MW Heard County Power Plant in Georgia. owned by Dynegy and NRG. average worldwide natural gas sales of more than 10 billion cubic feet per day and more than 1. a 250 MW natural gas–fueled. In support of the merger. with sales of more than 8. and the 155 MW Calcasieu Plant in Lake Charles. treating and processing facilities. a 500 MW natural gas–fired peaking plant in Florida. strategic alliances whereby Dynegy pur- chases substantially all natural gas and natural gas liquids produced or controlled by Chevron in the United States (excluding Alaska) and supplies natural gas and natural gas liquids feedstocks to Chevron’s U.

338 3.317 1.489 CHANGES IN NET Africa 322 288 274 359 103 PROVED RESERVES Other International 3.0 Equity Share in Affiliates Indonesia 134 151 161 152 155 Kazakhstan 1.187 3.663 2.148 1.290 1.736 Net Natural Gas United States 3.410 Equity Share in Affiliates Indonesia 134 151 161 152 155 0 Kazakhstan 1.209 6.032 969 Other International 2 661 521 519 482 538 0 90 91 92 93 94 95 96 97 98 99 Total – Consolidated Companies 3.131 1.5 Total – Consolidated Companies 7.505 90 91 92 93 94 95 96 97 98 99 Total – Net Reser ves 9.135 1.969 2.329 1.805 1.298 1.723 10.783 Net Crude Oil and Natural Gas Liquids 2 United States 1.660 1.581 1.532 1.5 Total – Gross Reser ves 10.897 9.379 10.0 Africa 322 288 223 293 84 Other International 3.289 1.794 0.233 1.497 4.181 Other International 2 749 594 592 565 629 Total – Consolidated Companies 3.087 Other International Total – Net Reser ves 4.287 3.286 1.350 8.248 1. .401 1.506 4.784 4. Net reserves exclude royalties and interests owned by others and reflect contractual arrangements and royalty obligations in effect at the time of the estimate.186 5.231 2.594 3. No reserves have been included for the Boscan Field operating service agreement.272 1.020 11.603 3. Billions of Cubic Feet Gross Natural Gas United States 4.258 1.820 5.475 3.708 11.115 9.072 1.187 Africa 1.023 2.140 6 Equity Share in Affiliates Indonesia 1.425 5. These proved reserve estimates are Proved Reserves reviewed annually by the corporation’s Reserves Advisory Committee to ensure that rigorous professional standards and the reserves definitions prescribed Net OEG Production by the Securities and Exchange Commission are consistently applied throughout the company.421 3.555 1.149 1.768 8.958 5.184 Total – Consolidated Companies 8.082 1.341 7.991 5.564 12.680 1.350 1.895 1.109 3.330 8 Africa 1.300 1.547 3.902 5.846 2.275 5.462 1.855 6.182 1.070 Additions to Net 1 Proved reserves are estimated by the company’s asset teams composed of earth scientists and reservoir engineers.983 3.075 1.776 Billions of OEG Barrels 2.196 1.478 1.364 4.366 1.401 8.788 4.694 Equity Share in Affiliates United States Indonesia 528 653 578 566 562 Africa Kazakhstan 1.233 1.361 1.271 5.303 Total – Gross Reser ves 6.544 1. See Glossary for explanation of proved reserves.963 10.343 Affiliates * Natural gas converted to oil equivalent gas (OEG) barrels at P R OV E D R E S E R V E S – N AT U R A L G A S 1 6 MCF = 1 OEG barrel.384 1.135 2.340 4 Kazakhstan 1.26 U P S T R E A M O P E R AT I N G D ATA Proved Reserves P R OV E D R E S E R V E S – C R U D E O I L A N D N AT U R A L G A S L I Q U I D S 1 At December 31 NET PROVED Millions of Barrels 1999 1998 1997 1996 1995 RESERVES* Gross Crude Oil and Natural Gas Liquids Billions of OEG Barrels United States 1. 2 Reserves for the LL-652 Field in Venezuela have been included in the company’s reserve quantities under a risked service agreement.697 4.703 8.056 9.317 10.303 9.753 1.

072 Nigeria 5.763 Total International 41.777 Qatar 3.388 3.256 1. .383 5.113 Venezuela 6 6 6 – – Other – – – – 362 Total Other International 35.809 4.238 858 857 857 857 Turkey 251 251 251 251 251 United Kingdom 557 703 755 1.169 1.499 5.203 2.098 Utah 112 301 211 314 386 Wyoming 96 112 196 192 219 Other States 25 25 85 96 96 Total Onshore 2.890 48.481 Pacific Coast 3 46 81 88 83 Total Offshore 3.131 4.727 – – – – Australia 4.281 3.669 61.918 17.425 5.775 6.723 2.010 Total Africa 6.841 2.024 57.647 4.796 3.085 Italy 32 32 32 32 32 Japan – – – – 5.144 3.948 Other International Argentina 2.538 56.378 5. 2 Net acreage is the sum of the fractional interests in gross acres in which Chevron has an interest.076 10.946 31.029 China 1.864 48.711 Worldwide Oil and Gas Net Acreage 47.387 2. 2 At December 31 Thousands of Acres 1999 1998 1997 1996 1995 United States Onshore Alaska 514 278 302 308 271 California 163 150 165 179 213 Colorado 134 129 55 54 48 Kansas 5 8 14 14 14 Louisiana 50 85 122 127 128 Michigan 88 102 26 39 42 Montana 9 48 120 120 111 Nevada – – 2 2 43 New Mexico 160 163 172 170 170 North Dakota 1 1 11 11 11 Oklahoma 43 58 118 104 104 Texas 860 927 1.119 1.620 38.071 13.988 10.415 1 Consolidated companies only.249 50.798 2.425 5.010 10.304 Azerbaijan 30 30 30 – – Bahrain 1.512 10.385 53.383 Somalia – 10.008 Canada 12.146 1.364 8.581 – 1.521 5.542 16.777 1.973 1.918 16.260 2.875 16.954 O ffshore Alaska Coast 61 21 97 123 114 Atlantic Coast 31 40 40 72 72 Gulf Coast 3.359 1.777 1.822 4.371 4.187 11.875 2.788 2.374 33.010 10.704 Africa Angola 855 855 855 855 855 Congo 185 503 504 504 504 Democratic Republic of Congo (formerly Zaire) 124 124 124 124 124 Namibia – – – – 1.028 11.750 Total United States 5.124 1.010 10.580 1.007 Colombia 286 171 190 250 154 Ecuador 247 – – – – Indonesia 3. U P S T R E A M O P E R AT I N G D ATA 27 Acreage N E T P R OV E D A N D U N P R OV E D O I L A N D G A S AC R E AG E 1.145 1.119 – Thailand 1.014 2.008 1.389 54.796 1.255 Netherland 27 27 27 27 27 Norway 93 107 – – – Papua New Guinea 322 322 523 523 502 Peru 2.239 3.348 31.359 – – – Bolivia 123 – 504 1.

5 820.3 319.2 54.1 Total International 557.5 69.1 3.4 62.4 Total United States 315.3 9.1% China 13.0 1.9 11.2 1.3 11.5 25.6 133.3 Mississippi – 0.2 Oklahoma 3.4 – – – – United Kingdom 3.4 Africa Angola 145.3 106.9 13.7 8.9 27.341.9 4.0 9.9 0.8 529.9 11.7 321.8 4.4 1.6 1.8 99.7% Canada 65.0% Other International Canada 5.5 10.425.3 311.4 12.6 45.2 Total Other International 230.430.8 28.6 855.5 83.000.6 3.0 Colombia 11.8 United States – Onshore Total – Consolidated Companies 1.2 12.043.9 9.5 17.9 COUNTRY FOR 1999 – Offshore 4.3 Others 10.28 U P S T R E A M O P E R AT I N G D ATA Liquids Production N E T C R U D E O I L A N D N AT U R A L G A S L I Q U I D S P R O D U C T I O N * Year Ended December 31 Thousands of Barrels Per Day 1999 1998 1997 1996 1995 Consolidated Companies United States NET LIQUIDS Alaska 3.3 12.8% Argentina 13.011.8 498.021.7 – – – – United Kingdom 42.0 9.9 507.4 975.3 151.3 Indonesia 17.5 35.5 256.4 12.2 340.107.4 65.6 4.1 Australia 2.6 Texas 45.8 13.9% Nigeria 144.2 D A I LY N E T P R O D U C T I O N O F N AT U R A L G A S L I Q U I D S ( I N C LU D E D A B OV E ) Thousands of Barrels Per Day United States 29.4 10.8 19.0 Colorado 9.1 Nigeria 12.7% Australia 30.7 62.5 8.4 37.9 5.5 13.4 Wyoming 10.2 Kazakhstan 8.0 Africa 400.7 23.2 471.3 United States 28.5 48.9 9.0 100.7 93.5 29.7 0.8 10.3 0.0 1.8 22.1 3.4 2.1 New Mexico 11.3 288.9 1.8 Equity Share in Affiliates Indonesia 162.0 International 21.0 148.1 125.5 210.9 62.5 115.6 Norway 15.454.9 0.6 – Offshore 104.6 NET LIQUIDS PRODUCTION Thailand 3.5 17.0 Total – Consolidated Companies 873.8 27.4 38.2 Thousands of Barrels Per Day United States 354.3 349.4 2.2 0.9 118.5 55.8 153.8 133.0% Democratic Republic of Congo (formerly Zaire) 8.2 3.7 90 91 92 93 94 95 96 97 98 99 Other International 266.4 26.5 210.3 0.4 GROSS LIQUIDS PRODUCTION 0.5 2.1 Total – Worldwide 1.1 9.0 994.5 31.7 336.0 – – – Papua New Guinea 15.8 1.8 241.3 341.5 29.4 12.4 United States – Offshore Equity Share in Affiliates Africa Indonesia 336.3 Other States 0.6 Kazakhstan 90.7 Other International (Including Affiliates) Kazakhstan 96.7 1.5 3.7 57.5 4.5 11.5 14.4 381.0 63.2 39.9 168.6 11.8 29.5 150.1 3.8 341.1 839.5 1.3 1.5 Percent Louisiana – Onshore 13.6 196.1 – Indonesia 16.127.7 261.1 55.0 46.0 851.4 – – – 1.3 354.2 14.8 22.5 19.8 111.5 20.3 1.1 10.8 148.9 104.8 254.6 0.7 0.7 390.4 72.8 Utah 2.4 21.074.5 1.1 2.3 PRODUCTION BY California – Onshore 107.0% Congo 28.1 127.8% Total Africa 327.1 Total – Worldwide 1.8 325.2 365.5 4.1 10.8 10.1 23.9 337.5 15.9 385.2 71.387.8 Angola 12.005.7 *Net liquids production excludes royalty interests owned by others. .8 4.9 249.5 387.1 343.0 17.5 15.5 209.2 Millions of Barrels Per Day Venezuela 2.2 396.1 3.3 141.5 9.2 84.4 112.

865 2.798 2.1% International United Kingdom 8.7% Argentina 9 – – – – Canada 7.0 Total – Consolidated Companies 2.7% Australia 227 224 215 214 208 Other 9.870 2.5 International 790 597 558 558 570 1.341 2.3% Canada 194 180 216 222 243 Netherlands 2 2 2 2 3 Nigeria 39 34 7 – – Thailand 39 – – – – United Kingdom 219 74 22 28 28 Other Countries – – – – 1 Total International 729 514 462 466 483 NET NATURAL Total – Consolidated Companies 2.5 Kazakhstan 75 58 68 69 42 Total – Worldwide 2.0 Millions of Cubic Feet Per Day United States 1.207 1.253 2.750 2.393 2.725 2.061 2.774 2.2% Total United States 1.859 United States – Onshore *Net natural gas production excludes royalty interests owned by others.351 GAS PRODUCTION Equity Share in Affiliates Billions of Cubic Feet Indonesia 70 82 46 49 40 Per Day 3.0 2.216 2.875 1.777 Equity Share in Affiliates 0.192 2.849 1. United States – Offshore International (Including Affiliates) .892 2.311 2.639 1.658 2.0 Kazakhstan 75 58 68 69 42 90 91 92 93 94 95 96 97 98 99 Total – Worldwide 2.425 2.5 G R O S S N AT U R A L G A S P R O D U C T I O N 2.5 Indonesia 70 82 47 49 40 0.513 2. U P S T R E A M O P E R AT I N G D ATA 29 Natural Gas Production N E T N AT U R A L G A S P R O D U C T I O N * Year Ended December 31 Millions of Cubic Feet Per Day 1999 1998 1997 1996 1995 Consolidated Companies United States Alabama – Onshore 23 25 30 30 32 NET NATURAL GAS – Offshore 87 81 83 58 44 PRODUCTION BY COUNTRY FOR 1999 Alaska 27 26 28 30 33 California – Onshore 115 109 119 101 103 Percent – Offshore – 13 17 21 22 Louisiana – Onshore 52 82 66 66 50 – Offshore 702 701 799 806 839 Michigan 27 29 4 4 1 Mississippi – – 9 1 1 New Mexico 49 60 61 89 102 Oklahoma 46 47 55 43 34 Texas – Onshore 323 331 371 394 411 – Offshore 2 38 20 54 41 Utah 6 7 8 8 9 Wyoming 170 181 166 162 145 Other States 10 9 13 8 1 United States 65.739 1.368 2.868 Australia 9.459 2.433 3.935 2.

realizations are based on crude oil revenues from net production and include intercompany sales at transfer prices that are at estimated market prices. International realizations are based on crude oil and natural gas liquids revenues from liftings. U.50 15 1.31 11. REFINED REALIZATIONS REALIZATIONS REVENUES PRODUCT PRICES Dollars Per Thousand Cubic Feet Dollars Per Barrel Billions of Dollars Dollars Per Barrel 2.807 4. includes equity share of sales by Dynegy.42 $ 17.5 15 1.5 35 3.51 International 1.936 4.16 $ 2.00 10 1.77 17. CRUDE OIL REALIZATIONS NATURAL GAS CRUDE OIL NATURAL GAS VS. natural gas realizations are based on revenues from net production.42 $ 2.0 20 1.00 20 2.S.774 1.609 4.94 2.379 N AT U R A L G A S L I Q U I D S S A L E S 3 Thousands of Barrels Per Day United States 133 130 133 187 213 International 57 53 69 36 47 Total 190 183 202 223 260 1 U. International realizations include equity in affiliates.73 C R U D E O I L R E A L I Z AT I O N S 2 Dollars Per Barrel United States $ 16.68 $ 18.504 1.87 1.S.50 25 3.366 3. International realizations include equity in affiliates.162 3.400 3.5 25 2.28 $ 1.48 16.02 $ 2.588 2.209 778 564 Total 4.0 30 2.11 $ 11.97 19.80 $ 15. International natural gas realizations are based on revenues from liftings.S. 2 U.34 International 17.303 3. 3 Beginning in 1996.10 N AT U R A L G A S S A L E S 3 Millions of Cubic Feet Per Day United States 3.30 U P S T R E A M O P E R AT I N G D ATA Natural Gas and Crude Oil Realizations N AT U R A L G A S R E A L I Z AT I O N S 1 Year Ended December 31 Dollars Per Thousand Cubic Feet 1999 1998 1997 1996 1995 United States $ 2.86 1.0 10 90 91 92 93 94 95 96 97 98 99 90 91 92 93 94 95 96 97 98 99 90 91 92 93 94 95 96 97 98 99 90 91 92 93 94 95 96 97 98 99 United States United States Refined Products International International Crude Oil .10 1.815 International 1.

722 1.666 1.811 1.850 10.543 10. unit operations or similar wells. Completion refers to the installation of permanent equipment for the production of oil or gas or. U P S T R E A M O P E R AT I N G D ATA 31 N e t We l l s C o m p l e t e d a n d P r o d u c i n g Year Ended December 31 N E T W E L L S CO M P L E T E D 1.506 1.059 $ 1.362 Total United States 10.114 11. WELLS PRODUCING Total 19 25 24 59 56 AT DECEMBER 31 Development – Oil 46 65 82 63 45 – Gas 14 6 7 7 3 Thousands 25 – Dry – 3 1 5 3 Total 60 74 90 75 51 20 Total International 79 99 114 134 107 Worldwide 599 486 824 772 519 15 E X P LO R AT I O N A N D D E V E LO P M E N T CO S T S 3 10 Millions of Dollars Year Ended December 31 United States 5 Exploration Costs $ 325 $ 443 $ 360 $ 425 $ 312 Development Costs $ 532 $ 680 $ 918 $ 603 $ 453 0 90 91 92 93 94 95 96 97 98 99 International Exploration Costs $ 337 $ 428 $ 420 $ 372 $ 345 Development Costs $ 893 $ 972 $ 990 $ 1.429 – Gas 198 160 206 154 145 Total International 1. .981 1. 3 1999 1998 1997 1996 1995 United States Exploratory – Oil 13 14 28 44 37 – Gas 59 32 28 76 64 – Dry 30 12 31 25 24 Total 102 58 87 145 125 Development – Oil 335 262 487 306 250 – Gas 76 62 130 179 31 – Dry 7 5 6 8 6 Total 418 329 623 493 287 Total United States 520 387 710 638 412 International Exploratory – Oil 4 9 10 20 13 – Gas 4 6 7 15 12 – Dry 11 10 7 24 31 NET U.516 12.574 Worldwide 12.771 – Gas 1.294 10.S.611 1.441 1.308 10. Producing wells exclude shut-in wells.039 9. in the case of a dry well.707 1 Net wells include all those wholly owned and the sum of fractional interests in those that are joint ventures.599 1.724 13. the reporting of abandonment to the appropriate agency.133 International Wells – Oil 1.571 1.208 N E T P R O D U C I N G W E L L S 1.783 1.919 11. 3 Consolidated companies only.102 8. 3 At December 31 United States Wells – Oil 8.417 1.572 9. 2 Indicates the number of wells completed during the year regardless of when drilling was initiated.275 12. 2.805 1.

reducing its work force by more than 10 percent and organizing its business along functional rather than geographic lines. W O R L D W I D E D O W N S T R E A M F I N A N C I A L A N D O P E R AT I N G H I G H L I G H T S ( Excludes Equity Interest in Caltex Corporation) 1 1999 1998 Reported Net Income (Millions of Dollars) $ 375 $ 636 Net Income Excluding Special Items (Millions of Dollars) $ 398 $ 710 Fuel Refinery Inputs (Thousands of Barrels Per Day) 2 956 867 Average Fuel Refinery Capacity (Thousands of Barrels Per Day) 2. Company-operated convenience stores sales were up a strong 25 percent. distribution. marketing and transp or tation of petroleum pro duc ts over much of the United States. In the United States. . The company owns interests in 9. In Canada. The focus will continue on stimulating retail growth. 2 Refinery input and capacity represent volumes at fuel refineries only. Caltex participates in its markets through a system of 7.S.S. Chevron maintained its position as British Columbia’s No. is involved in the downstream business in more than 60 countries in the Asia-Pacific region. Africa and the Middle East. In Canada. Chevron is a leading marketer in the British Columbia area. Branded gasoline sales continued to increase. liquefied petroleum gas (LPG).628 11.000 barrels per day. trades and transports crude oil. 1 gasoline and jet fuel marketer in spite of increased competition.110 Total Number of Controlled Seagoing Vessels 33 35 Cargo Transported by Controlled Vessels (Millions of Barrels) 223 258 Total Net Pipeline Mileage 9. adjusted for sales and closures of refineries. industry average. Caltex completed a major reorganization in 1999. Southwest and South. Chevron operates a fleet of 33 vessels. which continued its excellent safety record in 1999. 3 Average capacity is based on capacity at the beginning and end of year. Caltex is engaged in ever y asp ec t of the downstream business through its operations in refining. Chevron purchases. located mostly in the Asia-Pacific region. Refinery Production) 61 65 Refined Product Sales (Thousands of Barrels Per Day) 1. a growth rate twice the U. Chevron Pro duc ts Company engages in the refining. 3 995 994 Percentage of Refining Capacity Utilized 96 87 U. shipping. growing 5 percent in 1999 to 545. reimaging existing sites and investing in frontier markets such as China. marketing.800 miles of crude oil.800 retail outlets and interests in 11 refineries.341 Refining Capital Expenditures (Millions of Dollars) $ 248 $ 283 Marketing Capital Expenditures (Millions of Dollars) $ 245 $ 366 Transportation Capital Expenditures (Millions of Dollars) $ 205 $ 97 1 Discussion of Caltex Corporation operations can be found on Pages 38– 40.116 8. sells. liquefied natural gas (LNG).100 retail outlets in the United States and Canada. Caltex Corp oration.431 Motor Gasoline Sales (Thousands of Barrels Per Day) 696 684 Number of Service Stations at December 31 8. Chevron owns and operates six refineries in the United States and one refinery in Canada. and refined and other products by vessels and pipeline. India and Vietnam. Chevron’s downstream affiliate. Chevron has a market share of 9 percent or more in 17 states in the West. The company also relocated its headquarters to Singapore and opened a shared service center in the Philippines to provide human resources and finance support for the new organization. natural gas and petroleum product pipelines. through its subsidiaries and affiliates.S. WORLDWIDE DOWNSTREAM Business Description Chevron markets refined products through 8.32 One of the largest marketers of petroleum pro duc ts in the United States. Mogas /Jet Yields (Percent of U.398 1. storage. supply and trading.

w Effectively managing costs. HI NV 28% 10% UT w Recognize and encourage unique individual 1 3 19% CA 2 talents possessed by each employee and as a 18% U N I T E D S T A T E S 2 KY result. w A leading global marketer of high-value branded lubricants. jet and diesel sales and increasing earnings from Town Pantry convenience stores. w Using capital efficiently. w Top supplier of jet fuel and aviation gasoline in the western United States. and South. suppliers P a c i f i c 1 MS AL GA 13% 13% 10% and neighbors by achieving superior perform. TX LA 4 3 3 A t l a n t i c 13% ance in the area of safety. reliable. 9% O c e a n 5 w Embrace new technology and design new work M E X I C O processes that promote a higher level of per- Market Share 9% and Greater Rank Source: Lundberg Share of Market Report –Taxable Mogas Sales formance than our competitors. help Chevron and our employees reach 11% 3 their full potential. CHEVRON MOTOR GASOLINE SALES – MARKET SHARE PERCENT AND RANKING . CANADA Achieve top financial performance by w Operating all aspects of the business incident free. OR 19% ID w Strive to be the preferred supplier of aviation 2 19% 1 fuels and diesel. Southwest. B U S I N E S S S T R AT E G I E S w Committed to becoming the leading branded AK WA C A N A D A 12% 20% marketer and convenience retailer in the West 3 2 and the Sun Belt. refining and distributing products in a safe. reliability and 10% 3 O c e a n 4 FL incident-free operations. w The preferred supplier of aviation fuels and diesel. w Generated increases in mogas volume and store sales at a higher pace than the industry. competitive and environmentally responsible manner. w Meeting customers’ needs now and in the future by anticipating changing needs and capitalizing on our ability to evaluate and implement faster than our competitors. w Growing branded gasoline. Strive to be w The customer’s choice for quality gasoline and other convenience goods in the West and Sunbelt. AZ 10% NM 3 17% w Earn the respect of our customers.the West. M A R K E T I N G – U N I T E D S TAT E S COMPETITIVE POSITION w Ranks among the top three gasoline marketers in 15 states. w Being a good neighbor by reducing operational impacts on our community. WORLDWIDE DOWNSTREAM 33 Downstream Objectives / Marketing – United States DOWNSTREAM OBJECTIVES U N I T E D S TAT E S Achieve top financial performance in downstream by being customer driven. w An industry leader in acquiring. w Primary retail markets are located in the fastest-growing areas of the United States .

more than double the industry growth. w Winner of the 1999 Supplier of the Year Award from Qantas Airways Ltd. w Continue to effectively manage costs. w Retail network of approximately 175 stations has the highest per-station throughput in British Columbia. w Continued to implement new strategies to increase financial returns and improve customer service for credit cards. a state-of-the-art call center and Chevron’s employees to most effectively serve our retailers’ needs and help them grow their businesses. B U S I N E S S S T R AT E G I E S w Operate incident-free in all aspects of the business. Ervin survey). w Continued to expand and upgrade the Town Pantry convenience store network. Same-store and overall nonfuel sales increased significantly for the second year in a row. We utilize Internet technology. w Expanded implementation of an incident-prevention program focused on reinforcing safe behaviors and prevention of incidents. Developed additional revenue opportunities from direct mail marketing of quality services and goods to the largest active credit card base in the petroleum industry. w Achieved a strong 5 percent increase in branded gasoline sales. innovation and delivery. w Redesigned our business processes around the Chevron Retailer Alliance. w Continued to develop cobranded facilities with McDonald’s. w Improved service station efficiency.J.Autopia. w Partnered with Disneyland to re-theme one of the original Disneyland attractions . more profitable stores and divesting smaller under- performing sites. w Maintained No. Construction began in 1999. w Opened 11 Extra Mile Markets. w Grow high-value branded transportation fuel sales and increase revenues by offering top-quality products and services. allowing us to provide improved support to our retailers at a lower overall cost. w Strengthen and grow the Town Pantry convenience store network.1 position in retail gasoline and jet fuel market share in British Columbia. w Continued expense-reduction initiatives to increase profitability of the retail network. w Rationalized our network by investing in larger. while maintaining expense levels. achieving 15 percent higher throughput volumes and 12 percent lower unit operating costs compared with equivalent competitor stations (M. w Network of Town Pantry gasoline convenience stores is the largest in British Columbia. a 13 percent increase in jet fuel and a 2 percent increase in diesel. and a new store image resulted in increased brand awareness .34 WORLDWIDE DOWNSTREAM Marketing – United States and Canada M A R K E T I N G – U N I T E D S TAT E S 1999 ACCOMPLISHMENTS w Introduced the Chevron Retailer Alliance. Build Town Pantry awareness and expand offerings at the stores. 1999 ACCOMPLISHMENTS w Increased overall sales volumes by 2 percent with a 3 percent growth in retail gasoline. MARKETING – CANADA COMPETITIVE POSITION w Chevron Canada Limited markets primarily in British Columbia. Chevron was chosen over six other major fuel suppliers because the company excels in areas such as technical support. w Continued to focus on the growing demand for convenience goods and services. for deli and pastry offerings. An agreement with Bread Garden. and the attraction is scheduled to reopen in the summer of 2000. an improved way for Chevron to do business with our retailers. More than 120 sites now open. w Market leader in transportation fuels in British Columbia through branded proprietary retail and cardlock facilities. which are designed to provide an expanded consumer offering and an enhanced customer experience. Retail growth was obtained with a less than 2 percent increase in total expense compared with 1998. w Reduced operating expenses by 7 percent.

and incident-free operations while achieving predictability in all operations. Identify and incorporate best practices in all operations. w Pascagoula. w El Paso. highly efficient and strong competitors in their respective areas. w Utilize the existing refining system to supply our growing customer demands with minimal capital additions. B U S I N E S S S T R AT E G I E S w Lead the industry in safety. The West Coast facilities are configured to reliably produce large volumes of high-value California cleaner burning gasoline and diesel fuel. 1999 ACCOMPLISHMENTS w Continued to improve safety performance. are well positioned to take advantage of growing and niche markets. w Pascagoula Refinery fully recovered from the devastating impact of Hurricane Georges which shut down the refinery for most of the fourth quarter 1998. increasing yields of the highest- valued products and reducing feedstock costs. Chevron’s three larger refineries. reliability. In addition. Refining capacity is generally located in regions experiencing growth in demand for refined products. are complex. the three smaller refineries. w Develop loyal customers by continuously improving the quality of our products. El Segundo and Richmond. w Continue to reduce operating expenses to lowest sustainable levels. an expansion project for the production of petrochemicals was successfully completed and brought online. The refinery set new records for refinery reliability and throughput in 1999. w Refinery nonfuel operating expenses were reduced by $79 million from 1998 and overall energy efficiency continued to improve. Leverage efforts throughout the refinery system to take advantage of economies of scale. . particularly the West and the Southeast. WORLDWIDE DOWNSTREAM 35 Refining Burnaby C A N A D A P a c i f i c O c e a n Salt Lake Richmond U N I T E D S T A T E S El Segundo Hawaii A t l a n t i c El Paso O c e a n Pascagoula M E X I C O Refineries R E F I N I N G – U N I T E D S TAT E S COMPETITIVE POSITION w One of the largest crude oil refiners in the United States. w Increase earnings by reliably operating facilities at economic utilization levels. Hawaii and Salt Lake.

EL SEGUNDO. fluid catalytic cracker units in 1996 to enable the which produce high-value benzene. yield and reliability while effectively managing costs and using capital efficiently. safety and environmental ery to produce California-mandated cleaner burning performance have continued to improve. T E X A S The El Segundo Refinery is a modern. H AWA I I catalytic cracker.CANADA COMPETITIVE POSITION w The Burnaby Refinery is a low-cost producer of petroleum products and the only refinery in Chevron Canada Limited’s primary marketing area. The new units are also more efficient and lower-valued refining feedstocks.000 barrels per day). The refinery spent $700 million added relationship with Chevron Chemical and its to upgrade and expand the facility’s alkylation and petrochemical production facilities at the refinery. C H E V R O N ’ S R E F I N E R I E S ( E XC L U D I N G C A LT E X ) PA S C AG O U L A . with a refining capacity of The Richmond Refinery is able to process 225. ethylbenzene and production of California-mandated cleaner burning paraxylene (chemical building blocks) from gasoline. . while reducing operating expense. Cogeneration improves the facility’s energy crude processing facilities in the world. CALIFORNIA E L PA S O. w The 50 percent-owned Alberta Envirofuels oxygenate plant in Edmonton. The recent replacement of the crude unit furnaces further improved energy efficiency and reliability. and modifications to the fluid H O N O LU LU . operational efficiency. Pascagoula’s facilities allow the manufacture of high-quality. The refin- motor gasoline and diesel fuel. CALIFORNIA The Pascagoula Refinery.000 barrels per day. Further upgrades ery is positioning itself to effectively compete with included a new continuous catalytic reformer. with the efficiency and makes the refinery nearly self-suffi- capability to efficiently convert low-cost. 1999 ACCOMPLISHMENTS w Processed a record 51. up 4 percent from previous best. reduced operating costs and improved operating efficiency. The Hawaiian Refinery has 54. The facility’s reliability. B U S I N E S S S T R AT E G I E S w Contribute to the company goal of achieving top financial performance by optimizing raw materials and improving throughput. achieved record high production levels while attaining a perfect safety and environmental record. complex coking The El Paso Refinery has a capacity of 90. is Chevron’s largest refinery.000 bar- refinery with a rated capacity of 260.000 295. competitive position is enhanced by a strong value. Alberta.000 barrels per day crude capacity and supplies a significant share of Hawaii’s gasoline market. the world’s Paso Refining Company facilities (Chevron’s share largest gasoline market. which will reduce hydrocarbon emissions during loading of ships and barges. in investments were made in 1995 to allow the refin. a growing product imports from the East. cost-effective to operate. new alkylation plant. w Began production of British Columbia-mandated cleaner gasoline on January 1. w Neared completion of a vapor recovery unit. 1999. It is located in the Los Angeles Basin. M I S S I S S I P P I RICHMOND.36 WORLDWIDE DOWNSTREAM Refining REFINING . lube oil base stocks. Upgrades in recent years have made the refinery energy self-sufficient. Approximately $700 million is 65.000 barrels per rels per day through integration with the former El day. low-quality cient in electric power. State-of-the-art lube oil crude oil into valuable light products. barrels per day of crude oil using one modern crude Pascagoula continues to be one of the premier heavy unit.800 barrels per day of crude.

Recently com. U T A H B U R N A B Y. plant in Edmonton. . w Leverage electronic commerce technology in all businesses. 1999 ACCOMPLISHMENTS w Fully integrated the Amoco lubricants business into North American finished lubricants. w Completed formation of the new marine fuels and lubricants joint venture with Texaco. w Expand our catalyst and technology licensing businesses. in the region. Delo 400 MG (heavy-duty motor oil) that exceeds all industry standards. w Use our leadership position in base oils to create value for our finished lubricant customers.770 barrels per day while achieving a perfect safety and environmental record.000 The Burnaby Refinery processes 52. Alberta. Chevron’s share of production is transported by pipeline to the Burnaby Refinery for shipment to the California market. w Continue to expand global presence to serve a growing global customer base. w Introduced a new formulation. C A N A D A The Salt Lake Refinery has a rated capacity of 45. high-sulfur day of crude oil into light products and asphalt for crude oil into valuable light products. the British Columbia market. produced an all-time high 18. Work completed in pleted projects have allowed the refinery to be a 1998 enabled the refinery to produce British low-cost producer of low-sulfur diesel and gasoline Columbia-mandated cleaner burning gasoline and improved the efficiency and reliability of the effective January 1. the Salt Lake Refinery is one of only This unit significantly reduces hydrocarbon five to operate coking facilities. w Grow the size and profitability of our asphalt business. Installation of a new crude unit furnaces. G L O B A L L U B R I C A N T S A N D S P E C I A LT Y P R O D U C T S B U S I N E S S S T R AT E G I E S w Continue to grow the size and profitability of the North American finished lubricants business.000 barrels per barrels per day and processes low-cost. The enables Salt Lake to produce in excess of 90 percent 50 percent-owned Alberta Envirofuels oxygenate premium high-value products from total input. w Continue to grow the size and profitability of our wax business.) S A LT L A K E C I T Y. B R I T I S H C O L U M B I A . 1999. The coking facility emissions during loading of ships and barges. Of the 17 refineries competing vapor recovery unit was completed in early 2000. WORLDWIDE DOWNSTREAM 37 Refining / Global Lubricants and Specialty Products CHEVRON’S REFINERIES (CONTD.

1999 ACCOMPLISHMENTS w Completed transforming Caltex from a geographically focused organization to one operating along functional business lines. is also involved in distrib. Africa and the Middle oil. Lubricants. six asphalt plants.Providing goods and services to achieve superior customer satisfaction. Lubricants.700 are controlled by the more effectively. reducing costs and increasing cash flow. w Building the Brand .38 WORLDWIDE DOWNSTREAM Caltex Corporation C A LT E X Caltex Corporation (Caltex). Additionally. base oils and refined products. . Marketing. Additionally. East. Its owned international downstream affiliate. The company maintains a organization is flatter and has improved channels strong marketing presence through 7. w Capital Stewardship and Profitable Growth .Portfolio management to achieve an optimum portfolio of businesses. storage. Caltex also operates more than 650 Star the relocation of its executive leadership team from Mart convenience stores. ies in South Korea. Caltex continues to be a major supplier of refined products through its large refiner- B U S I N E S S S T R AT E G I E S w Operational Excellence and Cost Reduction . w Restructured manpower. has an trading organization provides 24-hour service to the operating area that includes more than 60 countries Caltex system and third parties that require crude in the Asia-Pacific region.Aligning the organization along the company’s strategy and motivating employees through accountability and rewards to achieve outstanding execution. New Business ution. and Business Support Group.Doing everything more productively than the competition. feedstock. and more than 500 ocean terminals and depots. Singapore and Thailand. fuel refineries with equity refinery capacity of nearly The business units for Manufacturing Supply and 850. achieving a more than 10 percent reduction in overall workforce and approxi- mately a 40 percent reduction in the number of expatriates.4 million (AMEP). supply and trading opera. Marketing. of which about 4. The new barrels per day in 1999. Caltex. it has interests Trading. w Completed the relocation of the executive leadership team to Singapore to be closer to Caltex’s customers and main operating areas. Asia Middle East and Pakistan tions. Caltex sales of refined products were 1. Development. which refines crude oil and markets Caltex completed its reorganization along func- petroleum and convenience products through its tional business units – Manufacturing Supply and subsidiaries and affiliates. Chevron’s 50 percent. Trading. w Established a Shared Services Center in Manila and regional data processing centers to achieve greater synergies and economies of scale. shipping. Caltex has completed company. w Organization Capability and Motivation .800 retail of communication to manage and allocate resources outlets. 17 Development are also based in Singapore. lube oil blending plants. and New Business in two lubricant refineries.000 barrels per day. Caltex has interests in 11 Dallas to Singapore to be closer to its customers.

By integrating the two operations under one man- This unit sets policies and guidelines for marketing agement. Thailand. WORLDWIDE DOWNSTREAM 39 Caltex Corporation M A N U F A C T U R I N G S U P P LY A N D T R A D I N G B U S I N E S S U N I T S Caltex Refining is a major refiner of crude oil and manufacturer of petroleum products for markets in South Korea much of the Eastern Hemisphere.000-barrel- Business Unit develops best practices and provides per-day refinery. enabling Philippines Caltex to meet the needs of its customers and capi. processing capacity of 220. It also negotiates product pur- marketers. Africa is the largest refinery in the Caltex system. Caltex continually upgrades its refineries Thailand and plants. company also owns and operates storage facilities. The combined plant has a MARKETING BUSINESS UNIT capacity of 300. benzene and Caltex Trading purchases and distributes paraxylene. with 2. Drawing on knowledge and methods from both Caltex has a one-third interest in the Singapore within and outside the oil industry. enhanced areas. Caltex’s largest refineries are located in South I n d i a n Korea. Chevron and Texaco. In 1999. including for retail fuel and convenience stores. Caltex has a large number of retail service to the Caltex system and to third parties outlets and a significant market share. The in Star Refinery at Map Ta Phut. O c e a n Kenya Singapore talize on new business opportunities. Caltex has an extensive network of retail outlets Caltex Trading manages the trading and trans- and convenience stores in Southeast Asia. branding. including Singapore and Malaysia. many with joint venture Pakistan partners. Caltex operates a programs are aimed at reinforcing the global nature wholly owned 112. and reducing emissions. In the portation of petroleum products produced by Caltex Philippines. Australia South O c e a n a Caltex 50 percent joint venture with the LG group. Through that require crude oil.000 barrels per day. In the Philippines. feedstock.000-barrel-per-day network planning. efficiency and realized annual savings of approxi- It also assists in positioning the brand. Thailand and Singapore. maintaining safe operations petroleum products and services.000-barrel-per-day refinery. Hong Kong and and others. positioning program included campaigns such as the Caltex Australia owns and operates fuel refineries “ … one stop worth making” campaign. It is located in Yosu and has an overall capacity of Caltex Operating Areas Caltex Refineries 650. companies. mately $20 million. Caltex formed the Alliance Refining Company. In Australia. South Africa. of the Caltex brand. enabling the company to market a wider liquefied petroleum gas (LPG) to its operating range of higher-value products. the Marketing Refining Company. It has equity P a c i f i c interest in 11 refineries. The refinery in New Zealand South Korea owned by LG-Caltex Oil Corporation. Caltex Trading provides 24-hour-a-day Singapore. and aviation fuel activities throughout the company. nearby Shell refinery. retail automation and refinery at Batangas. Caltex owns and operates terminal Caltex holds a 64 percent equity ownership interest facilities to allow the importation of product. the company functional expertise in areas such as location and operates a wholly owned 72. In South Korea. It is one of the The Marketing Business Unit handles marketing most efficient refining complexes in Southeast Asia. An enhanced brand which is the largest oil company in Australia. Caltex is one of South Korea’s largest refined products. The company in Sydney and Brisbane with a total crude oil introduced loyalty programs in several countries. base oils and LG-Caltex. These and other In Cape Town. which operates a 285. Such enhancements increase the versa- tility and productivity of these facilities.000 barrels per day. Caltex is also active in converting lower-value refinery output into products such as polypropylene. Caltex reduced operating costs. Malaysia. Caltex is focusing on converting Refining investments in South Africa are directed at its retail sites to become the brand of choice for increasing efficiency.000 barrels per day.700 service stations and a retail chases and trades and coordinates shipping with market share of about 28 percent. an cylinder filling facilities and transport fleets for bulk operating alliance between its Star refinery and the and cylinder delivery. . Thailand. credit card marketing. Caltex has a 50 percent equity In 1999. launched several initiatives. the Caltex Marketing Business Unit ownership interest in Caltex Australia Limited.

Caltex’s Revtex motorcycle oil was also launched This joint venture is expected to capture a large during 1999.40 WORLDWIDE DOWNSTREAM Caltex Corporation In Australia. Vietnam and India. Caltex today is the 0 for cost and increasing productivity has led to a 90 91 92 93 94 95 96 97 98 99 largest marketer of LPG in the four southern Indian significant reduction in the cost of goods sold. In order to pursue lubricants marketing Sales by Consolidated Companies opportunities aggressively. This acquisition propels Caltex enhancing competency in marketing lubricants. Kukdong has about 1. Singapore. the company City Gas Company in Seoul. LNG is used in households.000 retail outlets. ment and manufacturing technology. transporta- in the areas of product development. South Korea. primarily in the southern province of Guangdong It launched a new grade of passenger car motor oil near Hong Kong. The most significant venture of the New Business In South Africa. Caltex continuously commercial. the company had 110 convenience presence in these areas through the sale of LPG. The increased focus on accountability Corporation. CALTEX REFINED Caltex Lubricants is building the brand with its PRODUCT TRADE SALES Caltex is participating in the lubricants market in Delo 400 lubricants. Development strategy is to build a strong market At the end of 1999. 200 reimaging existing sites in South Africa. factories and cogeneration plants. The New Business SPECIAL ITEMS owned or leased by Caltex and 720 are independent. This Thousands of been launched as a worldwide premium diesel engine Barrels Per Day plant will supply Caltex markets in China. It provides expertise the stage for entering the LNG import. share of the LPG market in the Shantou region. The company has taken a number of aggressive Caltex entered the LPG market in India by cost control measures in the lubricants business 300 purchasing a 50 percent interest in an existing mar- through supply chain management and asset ration- keter of LPG. 1500 oil. LPG and lubes markets. Thailand. The company also has a 99 percent under the Caltex Havoline Energy brand. Caltex Lubricants had a successful year in 1999. approximately 50 gasoline service stations in China. 100 LUBRICANTS BUSINESS UNIT Kukdong City Gas supplies to nine districts in the The Caltex Lubricants Business Unit focuses on central area of Seoul. company’s long-term investment in new geographic pal channels of distribution: retail. wholesale and areas and business segments. Caltex is currently marketing lubricants in key aspect of Caltex Lubricant’s strategy for generat- Vietnam through more than 700 branded points of ing higher revenue. Here. brand manage- tion. 400 over the next few years. The company with GM. Caltex plans to expanding into the retail motor fuel sector when expand the Star Mart network to about 200 stores permitted. in southern India. Caltex has been a leading mar. of which 915 are as China. LPG and Product line management and brand building is a 1200 asphalt. Millions of Dollars store sites. Caltex is focusing on City Gas liquefied natural gas (LNG) is a preferred protecting its market share by renovating and fuel due to its convenience. Jaguar and Volvo. the retail. This business Caltex’s current focus in China is to participate in unit also coordinates quality assurance systems. The launch equity share in a joint venture for LPG and a dedi- of this grade in the Philippines. Southern Petrochemical Industries alization. restaurants. wholesale and retail business. business buildings. The company is building operates a lube oil blending and grease manufactur- on its association with these automobile companies ing plant in Haiphong. Caltex has a retail market share of NEW BUSINESS DEVELOPMENT 29 percent. Vietnam about 60 miles southwest of Hanoi. development of markets for lubricants. The company has commenced a program lubricants and asphalt with the intent of eventually 500 to rebrand these sites as Star Marts. a major port in northern 600 for its lubricants marketing. Caltex has established alliances 900 sale catering mainly to motorcycles. Caltex Delo multigrade has China with a lube oil blending plant in Tianjin. . Development in 1999 was the acquisition of Kukdong 300 keter of gasoline for many years. states. safety and stable supply. Caltex is working toward building on Chevron’s Caltex’s plans in Vietnam continue to focus on Delo brand strength. cated deepwater jetty capable of receiving refriger- India and South Africa has been very successful. Caltex’s service station network consists seeks new business opportunities in countries such CALTEX NET INCOME EXCLUDING of Caltex and Ampol branded sites. ated LPG near the southern China city of Shantou. Caltex markets petroleum products in all Caltex New Business Development manages the Australian states and territories through three princi. 0 into the fast-growing natural gas market and sets 92 93 94 95 96 97 98 99 greases and specialty products. Caltex operates marketing programs and communication processes. Caltex purchased its Sales by Affiliated partner’s share of their lubricant joint venture and is Companies now the sole owner of the business Caltex Lubricants India Limited.

includes design. one vessel at Hibernia and two vessels chartered by Tengizchevroil. offshore Angola.S.4 and no operating leases with options to retain use for up to serious injuries occurred during the year. Int’l U. excludes single-voyage charters. 2 Company-Operated 3 25. improving industry safety and environmental standards as well as supporting worldwide oil spill response capability. Shipping personnel participated in the construction refineries. 4 Includes cargo carried by company-operated and time-chartered vessels. Chevron the Far East and South America to Chevron U. The fourth vessel was delivered in early The company continues to play a leadership role 2000. West Coast and Gulf Coast. marketed crude oil to customers worldwide.000 3 3 3 6 4 6 5 6 5 6 45. Also excludes vessels chartered on behalf of Caltex. Int’l U. storage and offtake vessels. This of companies.000 – – – – – – – – – – 45.000 – – – – – 1 – 3 – 3 25. commercial company.000 – 13 – 14 – 14 – 14 – 14 VLCCs: 160. . operated under long-term leases. and operation of offshore terminals around vessels chartered at any given time on a single.S.000 – 1 – 1 – 1 – 1 – 1 Total Company-Operated 4 28 4 30 5 29 6 29 6 29 Time-Char tered Up to 25. At December 31 VESSELS 1999 1998 1997 1996 1995 U.S. Int’l U. Int’l U. Chevron also has 30 to 40 more projects.000 – 45.000 – 80.S.000 – 9 – 7 – 6 – 6 – 6 ULCCs: Above 320. Also the OSHA recordable double-hull tankers to be operated under eight-year injury rate was substanitially reduced to 1.000 – 45. engineering and operation of floating trolled vessels. WORLDWIDE DOWNSTREAM 41 Shipping SHIPPING MARINE SERVICES Chevron Shipping Company provides marine Chevron Shipping provides a variety of services in transportation and services to the Chevron group support of Chevron’s offshore oil production. or on negotiation of shuttle tankers used in offshore oil long-term charters.000 – 160. on production. which are either owned by the production. Chevron operates a fleet of 33 con.4 Year Ended December 31 Millions of Barrels 44 179 59 199 69 229 71 241 70 248 Thousands of Barrels Per Day 120 491 162 545 189 627 194 657 191 680 Billions of Ton-Miles 5 201 6 185 5 180 7 186 7 176 1 Consolidated companies only.000 – 1 – 1 – 1 – 2 – 2 80.000 – 320.000 – 80. 3 Includes owned and bareboat-chartered. Chevron Shipping provided key project management technical staff and operations support M A R I N E T R A N S P O R TAT I O N to assist in bringing the deepwater Kuito Field.S. Int’l Number of Controlled Seagoing Vessels by Size. 18 years. DW T 1. Chevron Shipping also provides marine transportation services S A F E T Y A N D E N V I R O N M E N TA L to affiliates Caltex and Tengizchevroil. 2 Excludes vessels jointly owned/operated by Chevron and partners: eight LNG vessels employed in the Australian North West Shelf Project.000 – 160. PERFORMANCE In 1999. and Far East locations and company- storage and offloading vessel. in The vessels deliver crude oil from the Middle East. In 1999.S.S. Block 14.500-deadweight-ton ronmental records in 1999. These vessels will deliver crude oil from the in many worldwide organizations directed toward Middle East to the U.000 – – – – – 1 – 1 – 1 Total Time-Char tered – 1 – 1 – 3 – 6 – 6 Total Controlled Seagoing Vessels 4 29 4 31 5 32 6 35 6 35 C A R G O T R A N S P O R T E D 2. Chevron took delivery of the second Chevron’s tankers maintained their exemplary envi- and third in a series of four 308. The vessels also distribute product to and commissioning phases of the floating production coastal U. voyage basis.S.000 1 2 1 2 1 2 1 2 1 2 80. the world.

8%) Cypress Pipeline Co.042 4.038 1. production function.830 10. 2 At December 31 Includes Equity in Affiliates (except Dynegy Inc.S.431 4.737 International 587 720 104 98 96 Worldwide – Product Lines 4.134 5. .629 5.711 4.833 Total Pipeline Mileage 9.064 1 Partially owned pipelines are included at the company’s equity percentage of total pipeline mileage.898 13.768 11.228 4.698 4. 2 Includes net pipeline mileage under transportation function.566 Natural Gas Lines United States 636 642 615 594 437 International 325 275 265 227 228 Worldwide – Natural Gas Lines 961 917 880 821 665 Produc t Lines United States 4.096 4.69%) Albuquerque Mid-Valley West Texas Pipeline Los Angeles (9%) Dixie El Paso Gulf Pipeline (28.134 6.482 10. Excludes gathering pipelines relating to U.) 1999 1998 1997 1996 1995 Crude Oil Lines United States 3.42 WORLDWIDE DOWNSTREAM Pipelines C A N A D A Pacific Spokane Ocean Salt Lake Products System Raven Ridge Pipe Line (56.794 International 950 1.009 801 772 Worldwide – Crude Oil Lines 4.943 5.845 5.178 5.333 5.28%) Pipeline Products (20.139 4.64%) Pipeline Mesquite Pipeline Pascagoula El Paso Empire MAGS Juarez Pipeline Chandeleur West Texas Pipeline Atlantic LPG Pipeline Chemical (40.802 4.3%) Salt San Lake Salt Lake Francisco City Crude System U N I T E D S T A T E S KLMR Standard Pacific Pipeline Gas Line (14.) Crude Pipelines Pipeline (Various %) (25%) Carbon Dioxide Crude Natural Gas Products (including LPG) CHEVRON PIPE LINE COMPANY OWNED AND/OR OPERATED PIPELINES N E T P I P E L I N E M I L E AG E 1. (50%) and NGL Venice-Faustina (Various %) Pipeline (Chevron Pipe Line Company’s O cea n interest in each pipeline is 100% M E X I C O Gulf Coast Amberjack unless otherwise noted.29%) Explorer Pipeline Estero Bakersfield (16.148 5.

3 849.5 Pakistan-Karachi [12% ] 5. Canada 52.0 924.3 12.498.523. Wales.8 50.8 Japan-Osaka [50% ] 8 – 30.8 116.0 97.5 Total United States 1.5 83.0 69.0 328.7 44.9 10.6 57.7 100.4 146.2 41.1 101.0 211.9 70. Caltex equity share increased from 37.69% ] 13.6 40.7 43.5 889.6 816.6 85.3 218.8 Equity in Caltex Refineries 425. Washington 6.9 743.2 4.3 71.75% to 16% in 1998. California 225.0 48.000 barrels per day).8 55.0 9.5 8.8 2.9 13.7 833.343.2 868.3 Bahrain [40%] 11 – – – – 26. 10 Caltex equity reflects 33.0 207.8 6.0 2.4 6.9 281.4 – Thailand-Sriracha [4.3% ] 10 95.3 2 United States – Asphalt Plants Perth Amboy.0 309.6 186.9 53.2 4.0 Kenya-Mombasa [16% ] 9 14.2 955.2 285. Only Caltex’s equity share of capacity and inputs is shown.6 5.6 Portland.6 1 Total United States – Asphalt Plants 102. .8 International 0 Burnaby.6 220.0 149.2 246.2 Millions of Barrels Per Day 3 Thailand-Map Ta Phut [64% ] 96.0 43.4 10.2 50.0 78.75% ] 10. United Kingdom 4 – – – 100.0 50.9 Port Arthur. 2 The Pascagoula Refinery operations were disrupted in the fourth quarter 1998 due to damages from Hurricane Georges.7 424.4 69. Utah 45.5% to 50% in 1998.7 46.7 48.5 932.9 220.8 39.524.7 90 91 92 93 94 95 96 97 98 99 Milford Haven.5% to 50% in 1998. Oregon 16.4 Japan-Muroran [50% ] 12 – – – – 19.1 Total United States – Fuel Refineries 944. Texas 3 – – – – – 26.4 34.1 1. Mississippi 2 295.4 203.8 23.1 32.3 Japan-Marifu [50% ] 8 – 42.0 43.0 43.7 38.5 312.4 55.7 59. 1997.8 South Korea-Yocheon [50% ] 325.4 52.1 902.1 5.0 51.6 451.4 1 Total Worldwide 1.7 288. Texas 1 65. 9 Caltex equity share increased from 11.1 6.0 201.7 179.4 65.423.6 67.0 1.488.9 416.6 910. United States 6 Refinery acquired in 1995 merger. 3 The Port Arthur Refinery was sold in 1995.3 9. New Jersey 80.3 38. International 7 Caltex equity share increased from 37.5 9.5 165.0 42.5 39.6 52.8 3.3 Total Caltex 851.0 66.4 158. Caltex interest in the refinery was sold April 1.6 40.9 7.6 6.0 40.0 1 The El Paso Refinery capacity and input represent only the Chevron share.9 5.000 barrels per day) and 50% interest in Residuum Fluid Catalytic Cracking Unit capacity (65.0 39. British Columbia.1 3.1 312. 0 4 The Milford Haven Refinery ceased processing operations in December 1997.6 100.7 Pascagoula.3 Singapore-Pualau Merilimau [33.2 59.1 46.0 64. California 260.9 416.0 5.1 33.2 4.0 72.1 United States Total International 52.9 54.6 63.4 10.8 951.8 REFINERY CAPACITY Honolulu. 11 In April 1996. 90 91 92 93 94 95 96 97 98 99 5 Figures in brackets denote Caltex’s ownership percentage at December 31.8 50.1 39.0 51.3 40.0 6.9 60.8 52.9 40.9 34.0 371.9 101.8 Millions of Barrels Per Day Richmond.4 New Zealand-Whangarei [12.8 International Caltex Refineries 5 Australia-Brisbane [50% ] 6 50.6 El Segundo.4 1.3 202.0 Philippines-Batangas [100% ] 71.4 57.2 5.046. Caltex ceded its throughput rights in the Bahrain Refinery.3% interest in original refinery capacity (220.3 Australia-Sydney [50% ] 7 58.0 884.6 48. 12 The Muroran and Negishi refineries were sold in April 1996.8 92.3 2 Japan-Negishi [50% ] 12 – – – – 39. WORLDWIDE DOWNSTREAM 43 Refining Capacities and Inputs R E F I N I N G C A PAC I T I E S A N D I N P U T S (Includes Equity in Affiliates) Capacity Refinery Inputs Thousands of Barrels Per Day 12/31/99 1999 1998 1997 1996 1995 United States – Fuel Refineries El Paso.6 61. 8 Caltex equity share sold in 1999.1 32.1 219.6 4.7 1.4 53.7 55.6 11.6 5.4 222.3 Richmond Beach.4 3 Salt Lake City.6 85.0 904.6 86.3 1. Hawaii 54.9 REFINERY INPUTS South Africa-Cape Town [100% ] 112.0 50.8 831.

5 At December 31 Raw Stocks 40 39 33 35 41 60 Unfinished Stocks 17 17 20 18 17 Finished Products 24 25 26 30 35 Total 81 81 79 83 93 40 1 Percentage of capacity utilized is based on average capacity (beginning and end of year) adjusted for sales and closures of refineries.2 164.003.1 U.6 149.8 UTILIZATION Total 1.4 Gas Oil 181..1 United States Other International 4. 2 Includes asphalt plants.1 118.44 WORLDWIDE DOWNSTREAM Refining Capacities and Inputs R E F I N E RY U T I L I Z AT I O N 1 Year Ended December 31 Percent of Capacity 1999 1998 1997 1996 1995 United States – Fuel Refineries 95.6 90.3 94.2 24.1 59.2 12.0 100.4 5.4 SOURCES OF CRUDE Caltex 89.2 22. R E F I N E RY P R O D U C T I O N O F F I N I S H E D P R O D U C T S Other International Thousands of Barrels Per Day Mogas 431.S.0 60 S O U R C E S O F C RU D E O I L I N P U T F O R U .7 2.8 63.5 950.1 417.0 Canada 101.0 Indonesia South America Mexico U .6 2.0 84.1 12. 4 Consolidated companies only.7 20.6 100.4 975.5 Middle East Total 100.3 South America 4. 20 3 Hydrocrackers. S .e.0 97.3 404. REFINERIES Percent 100 U T I L I Z AT I O N O F C R AC K I N G A N D CO K I N G FAC I L I T I E S 3 Percent of Capacity 80 United States 78.5 26. S .6 133.1 4. 0 5 On an “owned” inventories basis (i.9 United States – Other 16.3 74.1 218.1 175. R E F I N E R I E S Percent of Total Input 40 Alaska North Slope 17.2 Jet Fuel 180.9 61.7 12.3 Fuel Oil 61.7 90.8 31.8 Percent of Capacity 100 P E T R O L E U M I N V E N TO R I E S 80 Millions of Barrels 4.5 2.0 85.4 111.4 88.1 3.1 WORLDWIDE REFINERY Other 148.3 82.8 86.6 195. catalytic crackers and coking facilities are the primary facilities used to convert heavier products into gasoline and other light products.1 953.0 0 95 96 97 98 99 Mexico 9.2 90.1 58.3 96.4 3.0 100.3 1.6 4.6 Indonesia 3.6 3.9 89.0 100.2 17. 90 91 92 93 94 95 96 97 98 99 .6 4.6 20 Middle East 43.5 31.3 29.5 414.4 93.2 106.8 7.0 398.3 92.5 200.5 92.7 3.5 33.4 97.9 162.0 100.3 79.1 897. physical inventory adjusted for volumes payable to or receivable from others).7 19.8 OIL INPUT FOR Worldwide2 91.0 31.0 27.0 165.5 80.

80 $ 32.086 600 300 TOTA L R E F I N E D P R O D U C T R E A L I Z AT I O N S * Dollars Per Barrel 0 92 93 94 95 96 97 98 99 United States $ 26.13 Jet Fuel 23.302 1.18 26.19 International 27.42 $ 27.62 26.028 2.32 11.39 $ 29.09 18.47 23.97 19.86 $ 22.09 Jet Fuel 24.02 $ 32.78 19. REFINED Total International 892 785 886 944 969 PRODUCT SALES Worldwide Thousands of Barrels Per Day Gasoline 696 684 679 645 635 1500 Jet Fuel 260 274 286 291 280 Gas Oils and Kerosene 263 251 302 299 297 1200 Residual Fuel Oil 69 124 137 139 115 Other 110 98 98 98 102 900 Total Consolidated Companies 1.68 $ 29.65 17.122 1.31 Worldwide Gasoline $ 30.23 30. .24 26.11 18.73 22.S.11 16.79 25.52 $ 24.10 *Consolidated companies only.193 1.79 Jet Fuel 26.30 16.09 17.80 Residual Fuel Oil 14.398 1.97 18.56 Residual Fuel Oil 14.62 Gas Oils and Kerosene 22.05 19.243 1.16 $ 32.87 23.47 11.20 31.194 2.35 $ 24.37 $ 28.85 27.079 2.36 26.49 Marketing Sales Worldwide 26.68 11.431 1.26 24.066 2.502 1.05 23. excludes excise taxes.28 Residual Fuel Oil 17.35 Gas Oils and Kerosene 23.42 27.52 $ 31.429 Equity Share of Affiliate 796 597 577 594 657 Total Worldwide 2.472 1.28 23.67 International Gasoline $ 34.67 $ 32.94 28.82 Supply Sales M A J O R R E F I N E D P R O D U C T R E A L I Z AT I O N S * Dollars Per Barrel United States Gasoline $ 30.55 $ 28.91 28.06 $ 30.55 27.13 26.43 29.46 18.46 16.69 27.93 21.66 15.70 25.20 28.117 International Gasoline 29 31 88 89 83 Jet Fuel 26 27 37 36 39 Gas Oils and Kerosene 27 53 98 113 101 Residual Fuel Oil 5 68 77 100 77 Other 9 9 9 12 12 96 188 309 350 312 Equity Share of Affiliate 796 597 577 594 657 U.94 $ 26.74 18.30 25. WORLDWIDE DOWNSTREAM 45 Refined Product Sales and Realizations REFINED PRODUCT SALES Year Ended December 31 Thousands of Barrels Per Day 1999 1998 1997 1996 1995 United States Gasoline 667 653 591 556 552 Jet Fuel 234 247 249 255 241 Gas Oils and Kerosene 236 198 204 186 196 Residual Fuel Oil 64 56 60 39 38 Other 101 89 89 86 90 Total United States 1.54 22.80 Gas Oils and Kerosene 23.93 $ 29.29 16.

209 1.868 U.588 $ 13.S. These service stations may either be company operated or leased to a dealer.S.237 6.321 6. 2 Light products include motor gasoline.567 2.212 1 Consolidated companies only.854 5.109 Station Efficiency Total Sales Revenues $ 12.643 * Efficiency index indicates the relative average throughput Sales Volumes (Thousands of Barrels Per Day) for company investment serv- United States 1. COMPANY INVESTMENT STATIONS/ Canada 177 – 191 – 187 – 189 – 193 – EFFICIENCY INDEX* Kazakhstan 2 – 2 – – – – – – – Number of Station United Kingdom – – – – – – 194 260 208 315 Company Invest.976 $ 11. using 1989 as the base year with an index International 82 111 223 238 223 of 100.736 6.694 $ 11. Total Sales Volumes 1.696 6.248 $ 11.420 1.280 1. aviation gasoline and mid-distillates.892 1.044 997 989 ice stations.637 6.235 1.46 WORLDWIDE DOWNSTREAM Marketing Outlets At December 31 1999 1998 1997 1996 1995 OUTLETS1 Company Other Company Other Company Other Company Other Company Other Ser vice Stations 2 United States 1.830 6.280 1.420 1.152 2. 2000 125 2 Company investment stations are motor vehicle outlets that are company owned or leased.267 1.870 $ 13.127 $ 9. jet fuel. LIGHT PRODUCT SALES VOLUMES Thousands of Barrels Per Day 1200 1000 800 600 400 200 0 95 96 97 98 99 .219 1.137 1.252 $ 9.016 1.920 5.411 $ 8.534 Investment Stations International 841 894 2.183 4000 175 Aircraft and Marine United States – 566 – 559 – 524 – 599 – 638 3000 150 Canada – 6 – 11 – 11 – 13 – 13 Total Aircraft and Marine – 572 – 570 – 535 – 612 – 651 1 Consolidated companies only.098 1.340 2. 1000 100 Year Ended December 31 L I G H T P R O D U C T S A L E S 1. Other stations consist of all remaining branded outlets that are owned by others and supplied with branded products. U.016 2.923 6.517 6. Efficiency ment Stations Index Total Ser vice Stations 1. 2 1999 1998 1997 1996 1995 0 75 90 91 92 93 94 95 96 97 98 99 Sales Revenues (Millions of Dollars) United States $ 11.

Japan and Singapore. and additives in plants in nine U. w Seek growth opportunities that strengthen our low-cost position based on technology. which are petrochemicals. Brazil. and a 220. the signing of definitive agreements and regulatory review. 1 in Asia Pacific market share. w Continue to strengthen technology position in core products. w Competitive cost position in petrochemicals with solid technology base and modern. China. w Market and technology leadership in many lubricant and fuel additive product lines. assimilated purchase of Exxon’s Paratone viscosity index improver business and began sale of the Oronite D-TECT ® product identifier line. The Petrochemical & Plastics Division completed a benzene and cyclohexane plant in Saudi Arabia. . 1999 ACCOMPLISHMENTS w Achieved double-digit growth in earnings. expanded high-density polyethylene capacity at Orange. COMPETITIVE POSITION w Assured access to competitively priced raw materials through integration with other Chevron operations. the Oronite Division commenced commercial operation of a fuel and lubricant additives plant in Singapore. The company markets its products worldwide. catapulting Chevron’s Oronite Division to No. following final approval by the companies’ boards. Chevron and Phillips Petroleum signed a letter of intent and exclusivity agreement to combine both companies’ worldwide olefins. closer to operations. relocating the headquarters to Houston. states and in Mexico. These expansions position the company to take advantage of future demand anticipated with the next upturn in the chemicals industry as well as to further reduce unit operating costs. CHEMICALS Business Description In 1999. Texas. France. Mississippi. w Commenced commercial operation in January 1999 of a $213 million plant in Singapore to manufacture and blend additives for fuels and lubricating oils worldwide. infrastructure and feedstocks. expansion of our Plexco Pipe subsidiary into Kazakhstan and start-up of the first privately owned polystyrene plant in Zhangjiagang. In February 2000. and completed an ethylbenzene project at Pascagoula. Oronite also constructed a polyisobutylene plant in the United States at Belle Chasse.C h evr o n C h e m i ca l Co m p a n y L LC p r o d u ce s p r i m a r i l y co m m o d i t y p e t r o . polymers and aromatics businesses into a 50/50 joint venture. The transaction is expected to close by mid-2000. 47 chemicals. styrene and polystyrene. w Highly competitive technology and manufacturing cost positions in benzene. The major operating groups are the Petrochemical & Plastics and Oronite divisions. w Restructured the business with a global focus. Mississippi. paraxylene. Chevron Chemical will continue to grow in 2000 with completion of a grassroots normal alpha olefins plant at Cedar Bayou. take advantage of overhead synergies and aggressively manage costs in all aspects of the business. Texas.S. The 50/50 joint venture with the Saudi Industrial Venture Capital Group began deliveries in January 2000 and also achieved an outstanding safety record with only one lost time injury in more than 13 million man-hours. Louisiana. The plant is now shipping to customers throughout the Asia Pacific region. plastics. and to make ethylbenzene at Pascagoula. w Completed expansions to increase high-density polyethylene production at Orange. w Improve efficiency.000-tons-per-year benzene. alpha olefins. w Continue to monitor and improve customer satisfaction and improve product offerings. This plant has achieved an outstanding safety record with no recordable incidents in its first year of operation. plastics and additives. sales realization and volumes over 1998 while achieving record low operating costs per barrel.000 tons-per-year cyclohexane plant in Saudi Arabia. cost-effective plant facilities. Texas. B U S I N E S S S T R AT E G I E S w Focus on improving financial performance in core business segments. w Completed construction of a 480. Texas.

markets and distributes specially tailored chemical-based products for consumer and industrial chemical additives for fuels and lubricants world- use. . and distributes petrochemicals and petro. manufac- markets. These products include olefins (ethylene and wide. synthetic motor oils. automotive additives and household detergents. Louisiana. w Completed a joint feasibility study for the development of an integrated aromatics project in Venezuela. providing improved lubricant performance. China. M A J O R O P E R AT I N G D I V I S I O N S PETROCHEMICAL & PLASTICS ORONITE ADDITIVES The Petrochemical & Plastics Division manufactures. A new polystyrene plant in China will be completed in May 2000 while a new plant producing normal alpha olefins will be added at the Cedar Bayou. w Assimilated the purchase of Exxon’s Paratone viscosity index improver business. France and Singapore. medical and pharma- ceutical applications. cants. facility in the summer of 2000. one in Mexico and a 50 percent joint venture facility in Saudi Arabia. tures. polystyrene and fiber in January 1999. as rigid and flexible packaging. key ethylene derivatives (high and low. inhibiting gasoline and lubricant products. w Proved market feasibility of a proprietary oxygen-scavenging polymer for use in food packaging. lubri. strengthens plans to grow the automotive The Petrochemical & Plastics Division operates engine-oil business.000-tons-per-year general purpose and high-impact polystyrene plant in Zhangjiagang. These additives improve performance in many propylene) and derivatives. styrene. density polyethylene) are used in food packaging. Chevron’s technology coupled with Petroleos de Venezuela. which positions Chevron as a leader in the viscosity index improver market and accelerates growth plans in the automotive engine-oil additives business. w Neared completion of a 100.48 CHEMICALS 1999 Accomplishments / Major Operating Divisions 1999 ACCOMPLISHMENTS (CONTD. such as normal alpha types of engines by controlling deposits and by olefins used in plasticizers. adhesives and synthetic fibers. These new facilities represent a combined investment of $110 million.A. w Commenced commercial operation in 1999 of new sulfonate. w Achieved record low cost on operating-expense-per-barrel basis. The plant is scheduled to begin production by midyear 2000.) w Construction on a new normal alpha olefins plant at Cedar Bayou. Aromatic products include the-art additives plant in Singapore began production benzene. high performance Brazil. The new state-of- plastic pipe. Texas. cogeneration and polyisobutylene facilities at Oronite’s Oak Point plant in Belle Chasse. The ultimate consumer products Paratone viscosity index improver business posi- derived from these chemical intermediates include tions Oronite as a leader in this market and plastics. Texas. film The division operates two manufacturing facili- and molding applications and fabricated products such ties in the United States and one each in Japan. Discussions continue with a potential partner in Venezuela to create a joint venture to produce aromatic chemicals. w Increased trade sales volumes by approximately 10 percent. through 13 manufacturing facilities in the United States. The recent purchase of Exxon’s intermediates. This new polymer will position us as a leader in the emerging field of active packaging for food. paraxylene. that will double production capacity using the latest technological improvements is under budget with completion scheduled for summer 2000. S. Ultimate consumer products include deposit- Additionally. and fittings. The Oronite Additives Division develops.’s feedstock position would provide the basis for a cost-competitive petrochemical complex.

309 10. TX Olefins and Aromatics St.472 12.332 International 779 625 602 605 621 Total Worldwide $ 3.267 11. IA Polymers Cedar Bayou. Japan Other Chemicals Queretaro.993 1.216 $ 3.958 $ 2. E XC LU D I N G S P E C I A L I T E M S 1 Year Ended December 31 Millions of Dollars 1999 1998 1997 1996 1995 United States $ 140 $ 89 $ 167 $ 175 $ 459 International 65 62 57 53 65 Total Worldwide $ 205 $ 151 $ 224 $ 228 $ 524 SALES BY GEOGRAPHIC AREA 2 Millions of Dollars United States $ 2. Singapore Other Chemicals N E T I N CO M E.219 International 1. Brazil Other Chemicals Gonfreville. TX Polymers Pascagoula.936 $ 3. SC Polymers Bloomfield. TX Polymers Reno. CHEMICALS 49 Operating Data M A N U F A C T U R I N G L O C AT I O N S ( W H O L LY O W N E D ) United States Location Products Location Products Colton. LA Olefins and Aromatics Orange.550 794 633 Total Worldwide 15.541 $ 3. Mexico Polymers Pulau Sakra. IA Polymers Knoxville. LA Other Chemicals Port Arthur. MS Olefins and Aromatics Waxahachie.672 1.313 11. James. CA Polymers Marietta. 3 Millions of Pounds United States 13.103 10. TX Olefins and Aromatics. 2 Includes third-party sales and sales to other Chevron companies. OH Polymers Richmond.953 S A L E S VO LU M E S 2.306 13. TN Polymers Fairfield.852 1 See Page 5 for reported net income.647 $ 3. France Other Chemicals Omaezaki. 3 1998 and prior years’ amounts restated to conform with 1999 presentation. Polymers Belle Chasse.800 10.591 $ 3.737 $ 3. NV Polymers International Location Products Sao Paulo. . CA Other Chemicals Abbeville.717 10.045 $ 2.

0 23. 4 Acquired August 1998. w Sold P&M’s interest in Black Beauty Coal Company.– 5.7 3.– . which consumed more than 80 percent of the Developed Reserves coal produced in 1999. .5 16. w Tightening sulfur dioxide emissions standards are increasing demand for low-sulfur coals.0 . 2 Idled November 1998. P & M O P E R AT I O N S Estimated Annual Sales 1 State / Principal Sulfur Annual Mine Name Country Operation Content Capacity 1 1999 1998 1997 1996 1995 Kemmerer WY Truck-and-Shovel Low 5. Principal operation changed from dragline to truck-and-shovel first quarter 2000. River Ocean M E X I C O Farco B U S I N E S S S T R AT E G I E S w P&M’s goal is to maximize return to the Corporation.S.0 Farco/Port Services4 TX Truck-and-Shovel Medium 0.4 2. sold 1999. 5 Sales and capacity are P&M’s share. w About 80 percent of P&M’s sales are made to electric Kemmerer U N I T E D S T A T E S utilities.0 7.– Total Sales 17. Twenty percent of the sales have terms of 10 years or longer.– .– 0.2 0.3 19. 200 w Reached agreement to extend for five years the sales contract with P&M’s largest customer.2 2. ranks among the top 15 coal producing companies in the United States. Operating Mines Coal Fields Commitments to achieve this goal include COAL RESERVES — Continuing to mine coal in a safe and environ- mentally responsible manner Millions of Tons — Continuing to improve productivity and reduce costs 600 — Strengthening long-term relationships with customers. Canyon w P&M holds low-sulfur coal reserves in major U.7 4.5 Inter-American Coal (29.– .3%)5 IN / IL T&S/Continuous Miner Various .8 1.9 0. 300 w Reduced overhead costs by streamlining headquarters structure.– Closed Mines/Brokered Sales Various – – .– Black Beauty (33.2 1. S. w Coal prices have declined in the 1990s. S.– . COAL BUSINESS ENVIRONMENT 92 93 94 95 96 97 98 99 w U. with the balance having terms of less McKinley York than 10 years. Conversion completed first quarter 2000.5 2.3 0.3 2.8 North River1 AL Longwall Medium 2. 400 w Geared up York Canyon Mine for conversion from a dragline operation to an efficient new truck-and-shovel mining system in conjunction with the opening of a new mining area.– .9 1.6 McKinley NM Dragline / T&S Low 7.3 1.– 0. 0 U.1 0. Atlantic North coal producing regions. coal markets are dominated by electric utilities.5 York Canyon3 NM Dragline Low 1.4 1.0 17.3 0.1 . a wholly owned Chevron subsidiary.8%) 6 Venezuela Truck-and-Shovel Low 0. 3 One of the two York Canyon mines was closed in late 1995.1 1.2 .4 2.6 16. w Industry consolidation continues as coal suppliers position themselves for competitive pressures. driven by excess productive capacity in the industry. largely from western mines.0 0.1 2. Deregulation of the electric utility industry places a premium on low-cost power Undeveloped Reserves generation and could potentially increase coal demand. sales and capacity represents P&M’s share.3 4.3 6. 100 w Increased cash generation from nonproducing properties by selling timber rights and methane royalties.9 6.– .7 4.6 2.0 4.2 6.1 .6 5.3 1 Millions of Tons. 6 Acquired interest in September 1997.9 Sebree2 KY Continuous Miner High 1. (P&M).4 3. 500 1999 ACCOMPLISHMENTS w Achieved the best safety record in P&M’s history and continued to lead key competitors in safety performance.– .50 COAL Business Description COMPETITIVE POSITION C A N A D A w The Pittsburg & Midway Coal Mining Co.2 1.

adhesives. are wells completed as dry holes – wells not capable ing royalties. term of lease or contract. Delineation wells are exploratory aging. tive formation or to delineate the extent of a find. R e s e r v e s Proved reserves are estimated quantities of Types of injectants include water. accumulation of oil and /or gas enclosed or surrounded P e t r o c h e m i c a l s Chemicals derived from petroleum by layers of less permeable or impervious rock. as a barrel of oil. lated gasoline is based on more stringent requirements C o n d e n s a t e s Liquid hydrocarbons produced with than the federally mandated reformulated gasoline. Olefins – used in the manufacture of pack- production exists. data demonstrate with reasonable certainty to be recov- erable in future years from known reservoirs under I n t e g r a t e d P e t r o l e u m C o m p a n y A company existing economic and operating conditions. gross production – the wells are wells in which drilling work has been com- company’s share of total production after deducting any pleted and that are capable of producing. Six thousand cubic feet of average R e s e r v o i r An underground formation containing an natural gas is equivalent to one average barrel of oil. Upstream operations comprise activities tional quantities that may result from extensions of related to the exploration and production of crude oil currently proved areas and from application of sec- and natural gas. California reformu- control deposits and improve lubricating performance. and natural gas. Dry wells joint venture partner’s equity share but before deduct. An integrated petroleum subject to change over time as additional information company’s operations are divided into two major becomes available. . natural gas that can be separated by cooling or other The California reformulated gasoline reduces exhaust means. 51 GLOSSARY O i l a n d G a s Te r m s A c r e a g e Land leased for oil and gas exploration R e f o r m u l a t e d G a s o l i n e Reformulated gasoline and production. to reduce a reservoir by the introduction of an artificial drive and exhaust emissions. royalties. contains oxygenates and incorporates additional com- position changes that reduce exhaust emissions year- A d d i t i v e s Chemicals added to fuels and lubricants to round. displacement mechanism (injectants) into the reservoir in order to restore formation pressure and fluid flow. based on a federal mandate. plastic pipes. and net production – gross production less of producing in commercial quantities. P r o d u c t i o n Oil and gas production is measured in Development wells are wells drilled in an existing reser- terms of total production – the entire quantity of oil and voir in a proved oil or gas producing area. Due to involved in the full spectrum of petroleum activities – the inherent uncertainties and the limited nature of from oil and gas exploration to the marketing of petrol- reservoir data. Recoverable reserves are O i l E q u i v a l e n t G a s ( O E G ) The volume of natural reserves that are recoverable using all known pri- gas that can be burned to give the same amount of heat mary and enhanced recovery methods. Proved reserves do not include addi- activities. tires. Completed gas produced from the property. Exploratory wells are wildcat of plastics. batteries. such as ether or alcohol. chemicals. emissions even more than the federal formula and as a result is cleaner burning. Downstream operations refer to the ondary or tertiary recovery processes not yet tested and refining. Oxygenated gasoline is for E n h a n c e d R e c o v e r y M e t h o d s Techniques used to wintertime use and contains an oxygen blending com- maintain or increase the production of oil and gas from ponent (oxygenate). steam. Royalties are the landowner’s share of gross production without bearing production expenses. household deter- wells drilled to determine the boundaries of a produc- gents and synthetic motor oils. estimates of underground reserves are eum finished products. synthetic fibers and household wells drilled in an unproved area where no oil or gas detergents. marketing and distribution activities for determined to be economic or recoverable beyond the petroleum products. oil and natural gas that geological and engineering gas and carbon dioxide. Major petrochemical operations within W e l l s Oil and gas wells are classified as either explora- Chevron include: Aromatics – used in the manufacture tory or development wells.

Commercial Worldwide Paper Issuer Chevron U. Data Processing Worldwide and Advanced Office Systems Chevron Petroleum Technology Company Oil Field Technical Services.A. .52 CHEVRON CORPORATION Major Chevron Organizations P R I N C I PA L A R E A S O R G A N I Z AT I O N S PRINCIPAL BUSINESS OF ACTIVITY Operating Chevron U. Research.K.S. The above listing represents the most significant of the company’s operations. Inc. Caltex Pacific Indonesia (50%) Exploration and Production Indonesia Tengizchevroil (45%) Exploration and Production Kazakhstan Dynegy Inc. Commercial Paper Issuer United States Chevron U. (28%) Midstream Operations Worldwide Service Chevron Environmental Management Company Environmental Remediation United States Chevron Information Technology Company Communications. Supply and Distribution Chevron Services Company Administrative Services Worldwide Finance Chevron Canada Enterprises Limited Commercial Paper Issuer Canada Chevron Capital U.A. divisions.T. Production Company Exploration and Production United States Chevron Products Company Refining and Marketing. Worldwide Research and Development Chevron Real Estate Management Company Property Management Worldwide Chevron Research and Technology Company Engineering. Petroleum Products United States and Natural Gas Transportation Chevron Shipping Company LLC Marine Management Worldwide Chevron Transport Corporation Limited Marine Transportation. Debt Financing United States Chevron U. Limited Exploration and Production North Sea Cabinda Gulf Oil Company Limited Exploration and Production Angola The Pittsburg & Midway Coal Mining Company Coal Worldwide Amoseas Indonesia Inc. Exploration and Production International Chevron Pipe Line Company Crude Oil. Development Worldwide and Technical Services for Refining. Inc. Sale/ Worldwide Trading of Crude Oil and Refined Products Chevron Asiatic Limited Exploration and Production International Chevron Canada Limited Refining and Marketing Western Canada Chevron Canada Resources Exploration and Production Canada Chevron Chemical Company LLC Industrial Chemicals Worldwide Chevron Chemical S. partnerships and affiliates oper- ating in about 100 countries. (50%) Exploration and Production Indonesia Caltex Corporation (50%) Refining and Marketing International P.S. Chevron’s interest is 100 percent unless otherwise noted in parentheses.com Internet–Based Full Service Marketplace Worldwide Chevron Corporation has ownership interests in approximately 500 subsidiaries. branches.A.K. Investment PLC Commercial Paper Issuer United States e-Business Petrocosm Marketplace Internet Hosted Procurement Worldwide RetailersMarketXchange.A. Industrial Chemicals International Chevron International Limited Exploration and Financing International Chevron Nigeria Limited Exploration and Production Nigeria Chevron Overseas Petroleum Inc.S.

”“our. and potential liability result- ing from pending or future litigation.” “plans. estimates and projections about the offer for sale of. potential disruption or interrup- Relations. actual outcomes and Chevron (those companies owned approximately 50 percent or results may differ materially from what is expressed or forecast less). F o r w a r d .” “estimates” and similar “the company. the term “Chevron” and such terms as “intends.”“the corporation. such state- ments could be affected by general domestic and international economic and political conditions. 575 Market Street. or telephone (415) 894-5690. chemicals prices and competitive con- its Annual Report to stockholders and its Annual Report on ditions affecting supply and demand for the company’s aro- Form 10-K filed with the Securities and Exchange Commission. potential failure to achieve expected San Francisco. not intended as a precise description of any of the separate Among the factors that could cause actual results to differ companies. San Francisco. development activities. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements. Words such as “expects. It is not a circular or prospectus regarding any security or ing to Chevron’s operations that are based on management’s stock of the company. Room 3444. each of which manages its own affairs. tion of the company’s production or manufacturing facilities California 94105-2856. 575 Market Street. production from existing and future oil and gas development If you have any questions regarding the data included projects. stockholders and others may write ny’s joint venture partners to fund their share of operations and to Comptroller’s Department. All of those terms are used for convenience only and are in such forward-looking statements.” As used in this report. Room 3519.M a r c h 2 0 0 0 This report has been issued solely for the pur.” “believes.com. uncertainties and assumptions indicates otherwise. due to accidents or political events. particularly. one or more of its consolidated subsidiaries. . These statements are not guarantees of future perform- or to all of them taken as a whole. Manager – Investor start-up of planned projects.” “projects. current expectations. inability of the compa- For copies of these reports. Pierre Breber. construction or herein. refining margins Additional information relating to Chevron is contained in and marketing margins.”“we” and “us” may refer to expressions are used to identify such forward-looking state- Chevron Corporation. Therefore. ments. dial actions under existing or future environmental regulations that may result in higher costs. should not be read to include “affiliates” of that are difficult to predict. but unless the context clearly ance and involve certain risks. California 94105-2856. or solicitation of any offer to buy any securities. Chevron undertakes no obligation to update publicly any forward-looking state- ments. regulations and litigation dealing with gasoline composition and characteristics. materially are crude oil and natural gas prices. In addition. petroleum and chemicals industries. potential delays in the development. future events or otherwise. matics. olefins and additives products. significant investment or product changes under existing or future environmental and litigation regulations including. whether as a result of new information. nor is it issued in connection with any sale. please write to Mr. potential liability for reme- or e-mail: pirb@chevron.L o o k i n g S t a t e m e n t s This Supplement to pose of providing additional Chevron financial and statistical the Annual Report contains forward-looking statements relat- data.

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