Chevron Announces $36.7 Billion Capital and Exploratory Budget for 2013

Chevron Corporation (NYSE: CVX) today announced a $36.7 billion capital
and exploratory investment program for 2013. Included in the 2013
program are $3.3 billion of planned expenditures by affiliates, which do
not require cash outlays by Chevron.

'Consistent with long-stated strategies, we′re investing in a portfolio
of very attractive oil and gas projects that will deliver volume growth
and real value to our stockholders,? said Chairman and CEO John Watson.
'Next year′s program supports several projects currently under
construction, including our Australian LNG projects and United States
deepwater developments. As these and other projects come online, we
anticipate production will reach our 2017 goal of 3.3 million barrels
per day. With our strong balance sheet and industry-leading producing
margins, I further expect to continue our pattern of significant
stockholder distributions.?

Approximately 90 percent of the 2013 spending program is budgeted for
upstream crude oil and natural gas exploration and production projects.
Another 7 percent is associated with the company′s downstream businesses
that manufacture, transport and sell gasoline, diesel fuel and other
refined products, fuel and lubricant additives, and petrochemicals.

HIGHLIGHTS OF THE 2013 CAPITAL AND EXPLORATORY SPENDING PROGRAM

Upstream

Investment of $33 billion is planned for exploration and production
activities, including major natural gas-related projects. Notable major
capital investments include developments in Australia, Nigeria, the U.S.
deepwater Gulf of Mexico, Kazakhstan, Angola and the Republic of Congo.
Planned capital spending also is directed toward improving crude oil and
natural gas recovery and reducing natural field declines for existing
producing assets throughout the world.

In Australia, the Gorgon three-train LNG foundation project on Barrow
Island has been under construction for three years and is approximately
55 percent complete.

A cost and schedule review has been completed, and the total cost
estimate for the foundation project has increased from AU$43 billion
(US$37 billion) to AU$52 billion (US$52 billion). Plant startup is
planned for late 2014, leading to the first LNG cargo in the first
quarter 2015. The factors contributing to the increased costs and
schedule impacts include labor costs and productivity associated with
Barrow Island site infrastructure, logistics challenges and weather
delays. In addition, currency impacts due to the strengthened Australian
dollar and changes in the mix of currencies since project sanction
account for approximately one-third of the projected increase in U.S.
dollar outlays.

'Gorgon project economics are attractive,' said Vice Chairman George
Kirkland. 'While investment requirements have grown, oil prices, which
directly impact the overall revenue stream, have increased ?by
approximately 80 percent over the same time period. In addition, the LNG
nameplate capacity has increased by 4 percent to 15.6 million tons per
year.?

Kirkland added, 'Our exploration program continues to discover
additional gas resources that could support future expansions of our
Australian LNG developments. The Wheatstone LNG project is currently 7
percent complete and is on budget and on schedule.'

In the Gulf of Mexico, projects under development include Jack/St. Malo,
Big Foot and Tubular Bells. The Jack/St. Malo and Big Foot projects are
approximately 55 and 65 percent complete, respectively, and are on
budget. First production for both of these projects is expected in 2014.

Upstream spending in 2013 for major capital projects in other regions
includes:

• 
  Nigeria ? further development of the Usan and Agbami deepwater fields
  and construction and plant commissioning of the Escravos
  gas-to-liquids facility
  
• 
  Angola/Republic of Congo ? startup and ramp up of Angola LNG and
  development of Mafumeira Sul (Angola) and Moho Nord (Republic of Congo)
  
• 
  Kazakhstan/Russia ? advancement of the Tengiz Future Growth Project
  (Kazakhstan) and the Caspian Pipeline expansion (Kazakhstan, Russia)
  
• 
  Brazil ? advancement of the Papa-Terra deepwater project
  
• 
  Canada ? Hebron offshore development
  
• 
  United Kingdom ? advancement of the Clair Ridge project and the
  Rosebank deepwater field
  
• 
  China ? development of the Chuandongbei natural gas project
  

Global exploration funding is expected to be $3.4 billion in 2013. This
planned spending includes initial appraisal of new acreage acquired over
the past two years, including Suriname, the Kurdistan region of Iraq and
Sierra Leone. The program also supports continued exploration and
appraisal activity in Western Australia, the Gulf of Mexico, West
Africa, and in several shale gas regions around the world.

About 30 percent of the upstream capital program is targeted to support
maintenance activities and mitigation of field declines, as well as
highly profitable projects related to currently producing assets.
Highlights of the 2013 base program include an increase in activity
across several producing regions of North America as well as an increase
in expenditures in Thailand and Indonesia.

Downstream

Capital spending of $2.7 billion in 2013 is budgeted for downstream
operations. Expenditures in refining are geared toward enhancing
reliability and energy efficiency, feedstock flexibility and production
of cleaner transportation fuels. Planned capital spending also is
directed toward producing premium base oil in Pascagoula, Mississippi,
and to expanding Oronite additives production in Singapore.

Additional investments are expected to be funded by Chevron affiliates,
including refining projects managed by the company′s 50 percent-owned GS
Caltex affiliate and additional chemicals projects associated with the
company′s 50 percent-owned Chevron Phillips Chemical Company LLC.

All Other

Expenditures of approximately $1 billion in 2013 are budgeted for
technology, power generation and other corporate activities.

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,
California. 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.

This press release contains forward-looking statements relating to
Chevron′s operations that are based on management′s current
expectations, estimates and projections about the petroleum, chemicals
and other energy-related industries. 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. These statements 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.
Therefore, actual outcomes and results may differ materially from what
is expressed or forecasted in such forward-looking statements. 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.

Among the important factors that could cause actual results to differ
materially from those in the forward-looking statements are: changing
crude oil and natural gas prices; changing refining, marketing and
chemical margins; actions of competitors or regulators; timing of
exploration expenses; timing of crude oil liftings; the competitiveness
of alternate-energy sources or product substitutes; technological
developments; the results of operations and financial condition of
equity affiliates; 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, severe
weather or crude oil production quotas that might be imposed by the
Organization of Petroleum Exporting Countries; the potential liability
for remedial actions or assessments under existing or future
environmental regulations and litigation; significant investment or
product changes under existing or future environmental statutes,
regulations and litigation; the potential liability resulting from other
pending or future litigation; the company′s future acquisition or
disposition of assets and gains and losses from asset dispositions or
impairments; 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; the effects of changed accounting rules under generally
accepted accounting principles promulgated by rule-setting bodies; and
the factors set forth under the heading 'Risk Factors? on pages 29
through 31 of the company′s 2011 Annual Report on Form 10-K. In
addition, such results could be affected by general domestic and
international economic and political conditions. Other unpredictable or
unknown factors not discussed in this press release could also have
material adverse effects on forward-looking statements.

Chevron Corporation

Lloyd Avram, +1-925-790-6930