Chevron and KOGAS Sign Agreement for Gorgon LNG

15-year Deal Builds on Several Recent Supply Commitments Commercializing Chevron's Equity Natural Gas in Australia

SAN RAMON, Calif., September 15, 2009 - Chevron Corporation (NYSE: CVX) today announced that its Australian subsidiaries have signed a Heads of Agreement (HOA) with the Korea Gas Corporation (KOGAS) for 1.5 million metric tons per annum (MTPA) of liquefied natural gas (LNG) from the Gorgon project.

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As part of the arrangement, Chevron and KOGAS have an option to extend the 15-year agreement for a further five years. The parties are also discussing LNG sales and an equity purchase from Chevron's Wheatstone project, located in northwest Australia.

The HOA announcement follows the signing of three Sales and Purchase Agreements on September 10, 2009 for a total supply of approximately 3 MTPA to Osaka Gas, Tokyo Gas, and GS Caltex. Chevron expects additional agreements for the sale of Gorgon LNG to be executed in the coming months.

"Following the final investment decision in the Gorgon project, this agreement is another example of how Chevron is progressing the monetization of its significant natural gas holdings in Australia," said Jim Blackwell, president, Chevron Asia Pacific Exploration and Production Company.

"KOGAS is the single largest LNG buyer in the world and we expect to build on this relationship as Gorgon moves toward first gas," said John Gass, president, Chevron Global Gas.

The Gorgon project is operated by Chevron Australia Pty Ltd (50 percent) in joint venture with the Australian subsidiaries of ExxonMobil (25 percent) and Shell (25 percent). The project's scope includes a three-train, 15 MTPA LNG facility; a carbon dioxide injection project expected to be the world's largest; and a domestic gas plant.

Source: Chevron Corporation