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Press release from Business Wire

Chevron and Tohoku Sign Agreement for Wheatstone LNG

<p class='bwalignc'> <i>Agreement for supply of up to 1 million tons per annum of LNG for 20 years</i> </p>

Monday, May 14, 2012

Chevron and Tohoku Sign Agreement for Wheatstone LNG09:00 EDT Monday, May 14, 2012 SAN RAMON, Calif. (Business Wire) -- Chevron Corporation (NYSE: CVX) today announced that its Australian subsidiaries have signed a non-binding Heads of Agreement (HOA) with Tohoku Electric Power Company Incorporated(Tohoku) for the delivery of liquefied natural gas (LNG) from the Chevron-operated Wheatstone natural gas project in Australia. Under the agreement, Chevron, together with Apache Energy and Kuwait Foreign Petroleum Exploration Company (KUFPEC), is expected to deliver up to 1 million tons per annum (MTPA) of LNG to Tohoku for up to 20 years. Joe Geagea, president, Chevron Gas and Midstream welcomed Tohoku as a major customer of the Wheatstone Project. “We are pleased Tohoku has agreed to source a significant portion of its annual energy supply requirements from the Wheatstone Project, which further highlights customers' confidence in Wheatstone as a safe, reliable energy source.” Roy Krzywosinski, managing director, Chevron Australia, said, more than 80 percent of Chevron's equity LNG from Wheatstone is now covered under long-term off-take agreements with customers in Asia. “This off-take agreement for Wheatstone demonstrates our Australian LNG projects are in the right geographic location at the right time to meet Asia's rapidly growing demand for cleaner burning natural gas.” The Chevron-operated Wheatstone Project will become one of Australia's largest resource projects. Located at Ashburton North, 7.5 miles (12 kilometers) west of Onslow in Western Australia, the foundation phase of the project will consist of two liquefied natural gas trains with a combined capacity of 8.9 MTPA and a domestic gas plant. The onshore foundation project is a joint venture between the Australian subsidiaries of Chevron (operator 72.14%), Apache (13%), KUFPEC (7%), Shell (6.4%) and Kyushu Electric (1.46%). Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company's success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company 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 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 Australia. 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. 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 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 CorporationGareth Johnstone, Singapore, +65 9728 8375