Kyushu Hoa

Chevron Signs Multiple Australian LNG Agreements with Kyushu Electric
Momentum continues for Gorgon and Wheatstone natural gas projects

PERTH, Western Australia, 26 January, 2010 Chevron Australia Pty Ltd and Chevron (TAPL) Pty Ltd today announced the signing of multiple agreements with Japanese power utility, Kyushu Electric Power Co., Inc. for the delivery of liquefied natural gas (LNG) from the Chevron-operated Gorgon and Wheatstone natural gas projects.

Under the Heads of Agreements (HOAs), Kyushu Electric anticipates receiving 0.3 million tonnes per annum (mtpa) of LNG from the Gorgon Project for 15 years.

Under the agreement, Kyushu Electric also intends to acquire 1.83 percent of Chevron's equity share in the Wheatstone field licenses and a 1.37 percent interest in the Wheatstone natural gas processing facilities to be developed onshore near Onslow in northwestern Australia. Additionally, Kyushu Electric expects to purchase 0.7 MTPA of LNG from the Wheatstone Project for up to 20 years. This sales volume is net of the LNG that Kyushu Electric will lift as an equity participant in Wheatstone. Including this equity participation, Kyushu Electric will take delivery of 0.8 mtpa of LNG from the Wheatstone Project.

Chevron Australia Managing Director Roy Krzywosinski said the Kyushu Electric agreements provide both increased momentum for the Wheatstone Project and an important customer for the Gorgon Project. "We look forward to expanding our long-standing relationship with Kyushu Electric as we progress the Gorgon and Wheatstone natural gas projects."

Chevron Asia Pacific Exploration and Production President, Jim Blackwell, said, "The agreements with Kyushu Electric further demonstrate our ability to attract large and experienced LNG buyers as we develop these two legacy gas projects in Australia."

Construction of the Gorgon Project began in the second half of 2009, with first gas planned for 2014. The initial project design includes a 15 MTPA LNG facility and domestic gas plant on Barrow Island in northwestern Australia. Chevron is the operator and has an approximate 47 percent interest in the Project.

The Wheatstone Project entered the front-end engineering and design phase in July 2009 and expects to make a final investment decision in 2011. Plans for the initial phase of the project include facilities with the capacity to process 8.6 MTPA of LNG and a domestic gas plant at Ashburton North, south of Onslow in Western Australia. Chevron is the operator and holds an approximate 75 percent interest in the project.

In October 2009, Chevron announced it had signed a binding agreement with Apache Julimar Pty Ltd, a subsidiary of the Apache Corporation, which will assume a 16.25 percent equity interest in the Wheatstone Project, and KUFPEC Australia (Julimar) Pty Ltd, a subsidiary of the Kuwait Foreign Petroleum Exploration Company k.s.c., which will assume an 8.75 percent interest in the project. Under this agreement, Chevron is responsible for marketing LNG produced from the Julimar and Brunello fields.

Chevron is one of the world's leading integrated energy companies and through its Australian subsidiaries, has been present in Australia for more than 50 years. With the ingenuity and commitment of more than 1,500 people, Chevron Australia leads the development of the Gorgon and Wheatstone natural gas projects; manages its equal one-sixth interest in the North West Shelf Venture; and operates Australia's largest onshore oilfield on Barrow Island and the Thevenard Island oilfields. The company is also a participant in the Browse liquefied natural gas development and is a significant investor in exploration offshore northwest Australia, one of Chevron's four global focus areas for exploration.

In addition, Chevron's Perth-based Global Technology Centre provides technology support and solutions to the company's operations in Australia and around the world. www.ChevronAustralia.com

Ends

Contact:
Nicole Hodgson -- Tel: +61 8 9216 4485 or [email protected]
Guy Houston -- Tel: +61 8 9485 5745 or [email protected]

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SOURCE: Chevron Australia