Chevron Reports Continued Success Containing and Reducing Remaining Oil Sheen; Accepts Full Responsibility for Incident

Chevron Corporation (NYSE:CVX) today reports that its subsidiary,
Chevron Brasil Upstream Frade Ltda., continues to work in partnership
with Brazilian government agencies to contain, reduce and eliminate the
remaining oil sheen in the vicinity of its Frade field. The sheen,
estimated at approximately 18 barrels or less in volume, is located
about 120 kilometers offshore Brazil and continues moving away from the
coast.

'Chevron takes full responsibility for this incident,? said Chevron
Brazil country manager, George Buck. 'We are committed to deploying
resources until the sheen can no longer be detected.?

Up to 18 vessels have been in rotating operation to support well
plugging operations and sheen cleanup. The vessels are using oil
response methods approved by the Brazilian government, such as
deployment of containment booms and surface skimming. At no time has
sand or chemical dispersants been used in the process.

Chevron is analyzing data to estimate the total volume of oil released
from the incident. This analysis is expected to be complete within days.
Brazil′s National Petroleum Agency (ANP) had estimated the total volume
of oil released at approximately 5,000 to 8,000 barrels.

'Our emergency response teams are trained and prepared to address a
potential spill incident,? said Buck. 'The moment the seeps were first
identified, we immediately activated our emergency response plan and
began dispatching necessary resources to safely manage the situation. We
moved quickly to begin plugging and cementing procedures to seal the
source. Our combined efforts greatly diminished the size of the sheen
and stopped the source of the seep flow within only four days of first
detection. We believe no new oil is seeping from the reservoir. Seep
lines continue to drain in the form of droplets.?

Regarding Chevron′s preliminary assessment of the incident, Buck said,
'We were drilling toward a targeted reservoir and encountered an
unexpected pressure spike or "kick′. We believe the kick caused fluid to
move into the wellbore and increased pressure opened a segment of the
wellbore. Fluid then escaped to reach thin fissures and migrate to the
ocean floor. The well was safely shut in, following standard operating
procedures. All equipment performed as expected. A complete
investigation is underway to understand the cause of the incident.
Findings will be shared with Brazilian government agencies and Chevron′s
global operations to prevent this from happening again.?

Chevron notes that ANP was informed of the company′s well plan before
drilling commenced. The plan included targeted depths and the targeted
reservoir.

The company will continue to cooperate fully with all authorities as it
has throughout the incident.

Development drilling operations in the field remain suspended.
Production from the Frade field has been maintained with volumes of
approximately 79,000 barrels of oil equivalent per day.

Chevron has provided video footage of the seeps on the ocean floor to
ANP. The footage can be viewed at: http://www.youtube.com/watch?v=xu10oQHpEGc.

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.

Chevron Corporation

Lloyd Avram, 925-790-6930 (U.S.)

Scott
Walker, 281-221-5765 (Brazil)