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Press release from Business Wire

Chevron Adds Third Group II Base Oil Hub in Europe

<p class='bwalignc'> <i>UK Tankage Augments Supply Reliability Of Premium Base Oil</i> </p>

Tuesday, July 09, 2013

Chevron Adds Third Group II Base Oil Hub in Europe

09:00 EDT Tuesday, July 09, 2013

SAN RAMON, Calif. (Business Wire) -- Chevron Lubricantstoday announced that it will be adding an additional storage facility for Group II base oil in Eastham, England. This is Chevron's third Group II supply hub in Europe in addition to storage facilities in Antwerp, Belgium and Hamburg, Germany. A complete product line will be inventoried at the facility, including Group II grades, 100R, 220R, 600R and Group II+, 110RLV.

Chevron's growing Group II base oil presence in Europe will give lubricant marketers more formulating flexibility in meeting tightening specifications for better fuel economy and reduced tailpipe emissions. Historically European lubricants have been formulated with some combination of Group I and Group III base oils plus additives that were readily available in the European market.

"Performance specifications are tightening in Europe to the point that Group II quality base oil will advantage many formulations,” said Cary Knuth, General Manager, Base Oils, Chevron Lubricants. “This new supply hub highlights Chevron's commitment to providing reliable supply to European lubricant producers as they transition to new formulations."

The latest specifications call for formulations that have low to medium amounts of Sulphated Ash, Phosphorus and Sulphur (SAPS). Meeting those specifications has lead to a base oil supply gap for producers of 10W-XX and 15W-XX multigrade lubricants, which account for more than 85% of the Heavy-Duty Motor Oil (HDMO) market in Europe. Group III alone has insufficient viscometrics to meet the performance requirements for heavier motor oil grades and Group I has too much sulphur for the new specifications. Heavy-duty engines require lubricants that provide sufficient high temperature/high shear (HTHS) characteristics to ensure adequate wear protection and maximize engine durability. Blending with Group II base oil, whose primary difference from Group III is higher viscosity, is the proven way to deliver adequate engine protection while meeting Medium and Low SAPS specifications.

Chevron's growing network of hubs in Europe will be supplied with base oil from Chevron's new state of the art base oil plant that is nearing completion in Pascagoula, Mississippi. When it starts-up, it will be one of the largest base oil plants in the world and is expected to produce 25 kBD (1250 kMT) of premium Group II base oil. It is the third plant where Chevron premium base oils are produced for the company's global supply chain. With the addition of the Pascagoula barrels, Chevron will become the world's largest producer of premium base oil and the only Group II producer with multiple plants producing fungible base oils.

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.

Except for the historical and factual information contained herein, the matters set forth in this press release, including statements as to the expected benefits of the transaction such as growth potential, market profile and financial strength, and other statements identified by words such as "estimates," "expects," "projects," plans," "adds," and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the possibility that the anticipated benefits from the acquisition cannot be fully realized, the possibility that costs or difficulties related to the integration of these operations into Chevron will be greater than expected, the impact of competition and other risk factors relating to our industry as detailed from time to time in Chevron's reports filed with the SEC. You 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 Lubricants
Katty Hoste, +Tel 0032 9 293 72 20
KATTY.HOSTE@CHEVRON.COM

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