Chevron Announces First Oil From Blind Faith Field in Gulf of Mexico

(BUSINESS WIRE)--Chevron Corporation (NYSE:CVX) today announced that it has started crude oil production from its Blind Faith Field in the deepwater Gulf of Mexico. First oil from Blind Faith was achieved on Nov. 11, 2008. Daily production is expected to ramp up to approximately 65,000 barrels of crude oil and 55 million cubic feet of natural gas over the next three months.

Blind Faith utilizes a deep-draft semisubmersible hull located about 160 miles (250 kilometers) southeast of New Orleans, La., on Mississippi Canyon block 650. Chevron’s deepest offshore production facility, Blind Faith is located in 6,500 feet (1,981 meters) of water, and with subsea systems located in 7,000 feet (2,134 meters) of water in Mississippi Canyon blocks 695 and 696.

“Blind Faith is one of several major near-term upstream projects that will allow us to grow our reserves and production,” said George Kirkland, executive vice president, Global Upstream and Gas, Chevron. “It is another demonstration of how Chevron is leading the industry in the selection and execution of major capital projects.”

Gary Luquette, president, Chevron North America Exploration and Production, said, “First oil from Blind Faith is another milestone in Chevron’s efforts to tap the vast deepwater energy resources in the Gulf of Mexico. Chevron is the largest leaseholder in the Gulf of Mexico, where we have a robust program of exploration and production activities, especially in the deep water.”

Steve Thurston, vice president, Deepwater Exploration and Projects, Chevron North America Exploration and Production, added, “The Blind Faith team delivered a world-class project that will bring on new supplies to help the nation meet its energy needs.”

The Blind Faith discovery well was drilled in June 2001 and encountered more than 200 feet (61 meters) of net pay in Miocene sands at depths of 20,900 feet (6,370 meters) to 24,300 feet (7,407 meters). A successful appraisal well was drilled in 2004. The field has an estimated gross resource potential exceeding 100 million barrels of oil-equivalent. Chevron holds a 75 percent working interest in Blind Faith and is the operator, and Anadarko Petroleum Corporation (NYSE:APC) holds the remaining 25 percent working interest.

Chevron Corporation is one of the world’s leading integrated energy companies, with subsidiaries that conduct business across the globe. The company’s success is driven by the ingenuity and commitment of approximately 59,000 employees who operate across the energy spectrum. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops and commercializes the energy resources of the future, including biofuels and other renewables. 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's activities in U.S. Gulf of Mexico. Words such as "anticipates," "expects," "projects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" 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 factors that could cause actual results to differ materially are changes in demand for and supply of crude oil and natural gas; selection and successful execution of development plans; actions of competitors; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on the scope of the company's operations; the potential disruption or interruption of project activities due to war, accidents, political events, civil unrest or severe weather; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

U.S. Securities and Exchange Commission (SEC) rules permit oil and gas companies to disclose only proved reserves in their filings with the SEC. Certain terms, such as "resources," "gross resource potential, " "oil-equivalent resources," "oil in place," "potentially recoverable volumes," "recoverable reserves," and "recoverable oil," among others, may be used in this press release or other public disclosures that are not permitted to be used in filings with the SEC.

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