Chevron Subsidiary Acquires Operating Interest in Western Canada LNG Project

  Chevron Subsidiary Acquires Operating Interest in Western Canada LNG Project

      Proposed two-train project ideally located to meet rapidly growing
                             Asia-Pacific demand

Business Wire

SAN RAMON, Calif. -- December 24, 2012

Chevron Corporation (NYSE: CVX) today announced that its indirect Canadian
subsidiary, Chevron Canada Limited, will acquire a 50 percent operating
interest in the Kitimat liquefied natural gas (LNG) project and proposed
Pacific Trail Pipeline (PTP), and a 50 percent interest in approximately
644,000 acres of petroleum and natural gas rights in the Horn River and Liard
Basins in British Columbia, Canada.

“The Kitimat LNG development is an attractive opportunity that is aligned with
existing strategies and will drive additional long-term production growth and
shareholder returns,” said George Kirkland, vice chairman, Chevron
Corporation.

“This investment grows our global LNG portfolio and builds upon our LNG
construction, operations and marketing capabilities. It is ideally situated to
meet rapidly growing demand for reliable, secure, and cleaner-burning fuels in
Asia, which are projected to approximately double from current levels by
2025.”

Under the terms of the agreements, Chevron Canada Limited will acquire all of
the interests currently owned by affiliates of EOG Resources Canada Inc. and
Encana Corporation in the proposed Kitimat LNG Project and PTP. Thereafter,
Chevron Canada Limited will equalize interests with an Apache Corporation
subsidiary, resulting in Chevron Canada Limited and Apache each holding a 50
percent interest in both the Kitimat LNG Project and PTP. Operatorship of both
facilities will transfer to Chevron Canada Limited.

The proposed two-train Kitimat LNG Project, currently progressing through the
Front-End Engineering and Design (FEED) phase, has a Canadian National Energy
Board license to export 10 million tons per annum of LNG.

Additionally, Chevron Canada Limited will acquire approximately 110,000 net
acres in the established Horn River Basin from Encana, EOG and Apache, and
approximately 212,000 net acres in the Liard Basin from Apache. Chevron Canada
Limited and Apache will each hold a 50 percent interest and Apache will
operate these two natural gas resource developments.

The agreements are subject to regulatory reviews.

Gary Luquette, president, Chevron North America Exploration and Production,
said, “This investment by Chevron Canada Limited captures significant resource
and acreage in proven and emerging natural gas basins in Canada, and is a key
opportunity to expand our overall North America exploration and production
portfolio. It will enable our North America operations to play an increasingly
important role in Chevron’s global growth.”

Jeff Lehrmann, president, Chevron Canada Limited, said, “We look forward to
working with the Governments of British Columbia and Canada, First Nations,
and local communities to grow this development, realize the project’s
long-term economic potential, and open new markets for Canadian natural gas.”

Chevron is one of the world’s leading integrated energy companies, with
subsidiaries that conduct business worldwide. The company is involved in
virtually every facet of the energy industry. Chevron explores for, produces
and transports crude oil and natural gas; refines, markets and distributes
transportation fuels and lubricants; manufactures and sells petrochemical
products; generates power and produces geothermal energy; provides energy
efficiency solutions; and develops the energy resources of the future,
including biofuels. Chevron is based in San Ramon, Calif. More information
about Chevron is available at www.chevron.com.

Cautionary Statement Relevant to Forward-Looking Information for the Purpose
of “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of
1995.

Some of the items discussed in this press release are forward-looking
statements about Chevron and Chevron Canada Limited’s activities in Canada.
Words such as "anticipates," "expects," "intends," "plans," "targets,"
“forecasts,” "projects," "believes," "seeks," “schedules,” "estimates,"
"budgets," “outlook” and similar expressions are intended to identify such
forward-looking statements. The statements are based upon management's current
expectations, estimates and projections; are not guarantees of future
performance; and are subject to certain risks, uncertainties and other
factors, some of which are beyond the company's control and are difficult to
predict. Among the important factors that could cause actual results to differ
materially from those in the forward-looking statements are changes in prices
of, demand for and supply of crude oil and natural gas; actions of
competitors; the inability or failure of the company’s joint-venture partners
to fund their share of operations and development activities; the potential
failure to achieve expected net production from existing and future crude oil
and natural gas development projects; potential delays in the development,
construction or start-up of planned projects; the potential disruption or
interruption of the company’s net production or manufacturing facilities or
delivery/transportation networks due to war, accidents, political events,
civil unrest, or severe weather; government-mandated sales, divestitures,
recapitalizations, industry-specific taxes and changes in fiscal terms or
restrictions on scope of company operations; foreign currency movements
compared with the U.S. dollar; and general economic and political conditions.
The reader should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. Unless
legally required, neither Chevron nor Chevron Canada Limited undertakes any
obligation to update publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.

Contact:

Chevron Corporation
Gareth Johnstone, San Ramon, +1 925-487-1306
 
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