Chevron Commences Operations on Next-Generation Drillship in Deepwater Gulf of Mexico

Chevron Corporation (NYSE: CVX)announced that the Pacific
Santa Ana, a deepwater drillship built to Chevron′s specifications,
has arrived in the Gulf of Mexico to work for Chevron under a five-year
contract with a subsidiary of Pacific Drilling S.A. (NYSE: PACD). PacificSanta Ana is the first drillship designed with the capacity to
perform dual gradient drilling (DGD).

'PacificSanta Ana will enable us to demonstrate dual
gradient drilling, which has the potential to change the way deepwater
wells are drilled,? said George Kirkland, vice chairman, Chevron
Corporation. 'This new process builds on our record of technology
leadership in deepwater.?

'The addition of PacificSanta Ana as Chevron′s fifth
drillship in the deepwater Gulf of Mexico demonstrates our long-term
commitment to developing America′s energy resources,? said Gary
Luquette, president of Chevron North America Exploration and Production
Company. 'We are bullish on the Gulf, where robust energy exploration
and development is vital to our nation′s economy and energy security.?

Unlike conventional deepwater drilling, which uses a single drilling
fluid weight in the borehole, dual gradient drilling employs two weights
of drilling fluid ? one above the seabed, another below. This allows
drillers to more closely match the pressures presented by nature and
effectively eliminates water depth as a consideration in well design.
DGD also allows drillers to more quickly detect and appropriately react
to downhole pressure changes, which can enhance the safety and
efficiency of deepwater drilling operations.

PacificSanta Ana is equipped with a DGD riser, a mud lift
pump handling system, six mud pumps ? three for drilling fluid and three
for seawater ? extensive fluid management system enhancements and more
than 72,000 feet of DGD-related cables. After additional equipment is
installed and tested, PacificSanta Ana will be used for
exploratory and development drilling in the deepwater Gulf of Mexico.

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's activities in the U.S. Gulf of Mexico. These
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,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, Chevron undertakes no obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.

Chevron Corporation

Russell Johnson, +1 713-372-1841