Chevron Grows Carnarvon Basin Interests in Browse Exchange

Agreement supports strategy to create Wheatstone Project expansion opportunities

SAN RAMON, Calif., August 20, 2012

Chevron Corporation (NYSE: CVX) today announced that its Australian subsidiary has reached an agreement to exchange its holdings in the Browse development for Shell Development (Australia) Pty Ltd's interests in the Clio and Acme fields(1) in the Carnarvon Basin offshore northwest Australia.

Under the agreement, subject to regulatory and other approvals, Chevron will exchange its 16.7 percent interest in the East Browse titles(2) and 20 percent interest in the West Browse titles(3) (4), for Shell's 33.3 percent interests in the WA-205-P and WA-42-R blocks. This will give Chevron a 100 percent interest in WA-205-P and WA-42-R. Shell will also make a $450 million cash payment to Chevron.

George Kirkland, vice chairman, Chevron Corporation, said: "Acquiring the remaining interests in WA-205-P and WA-42-R fits strategically with our long-term plans to grow our Wheatstone area resource base, and create expansion opportunities for the Wheatstone Project."

Melody Meyer, president, Chevron Asia Pacific Exploration and Production, said: "Australia is a key focus area for Chevron, evidenced by our investment and development of the Gorgon and Wheatstone projects, and strong exploration and appraisal program. Consolidating our Carnarvon Basin position furthers our progress towards becoming a leading liquefied natural and domestic gas producer in Australia and Asia-Pacific."

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.

1: Shell has a 33.3% interest in the Clio-Acme titles WA-42-R and WA-205-P
2: East Browse titles are WA30R, WA31R, WA32R, WAR2 and TR5.
3: West Browse titles are WA28R, WA29R and WA275P.
4: Chevron will retain its interests in the following Browse basin exploration leases: WA-274-P, WA-281-P and WA-410-P

Chevron Corporation press release