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Chevron Subsidiary Acquires Operating Interest in Western Canada LNG Project

December 24, 2012

Proposed two-train project ideally located to meet rapidly growing
Asia-Pacific demand

SAN RAMON, CA, Dec. 24, 2012 /CNW/ – Chevron Corporation (NYSE: CVX)
today announced that its indirect Canadian subsidiary, Chevron Canada
Limited, will acquire a 50 percent operating interest in the Kitimat
liquefied natural gas (LNG) project and proposed Pacific Trail Pipeline
(PTP), and a 50 percent interest in approximately 644,000 acres of
petroleum and natural gas rights in the Horn River and Liard Basins in
British Columbia, Canada.

“The Kitimat LNG development is an attractive opportunity that is
aligned with existing strategies and will drive additional long-term
production growth and shareholder returns,” said George Kirkland, vice
chairman, Chevron Corporation.

“This investment grows our global LNG portfolio and builds upon our LNG
construction, operations and marketing capabilities. It is ideally
situated to meet rapidly growing demand for reliable, secure, and
cleaner-burning fuels in Asia, which are projected to approximately
double from current levels by 2025.” 

Under the terms of the agreements, Chevron Canada Limited will acquire
all of the interests currently owned by affiliates of EOG Resources
Canada Inc. and Encana Corporation in the proposed Kitimat LNG Project
and PTP. Thereafter, Chevron Canada Limited will equalize interests
with an Apache Corporation subsidiary, resulting in Chevron Canada
Limited and Apache each holding a 50 percent interest in both the
Kitimat LNG Project and PTP. Operatorship of both facilities will
transfer to Chevron Canada Limited.

The proposed two-train Kitimat LNG Project, currently progressing
through the Front-End Engineering and Design (FEED) phase, has a
Canadian National Energy Board license to export 10 million tons per
annum of LNG.

Additionally, Chevron Canada Limited will acquire approximately 110,000
net acres in the established Horn River Basin from Encana, EOG and
Apache, and approximately 212,000 net acres in the Liard Basin from
Apache. Chevron Canada Limited and Apache will each hold a 50 percent
interest and Apache will operate these two natural gas resource
developments.

The agreements are subject to regulatory reviews.

Gary Luquette, president, Chevron North America Exploration and
Production, said, “This investment by Chevron Canada Limited captures
significant resource and acreage in proven and emerging natural gas
basins in Canada, and is a key opportunity to expand our overall North
America exploration and production portfolio.  It will enable our North
America operations to play an increasingly important role in Chevron’s
global growth.”

Jeff Lehrmann, president, Chevron Canada Limited, said, “We look forward
to working with the Governments of British Columbia and Canada, First
Nations, and local communities to grow this development, realize the
project’s long-term economic potential, and open new markets for
Canadian natural gas.”

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.

Some of the items discussed in this press release are forward-looking
statements about Chevron and Chevron Canada Limited’s activities in
Canada. 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 and 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, neither Chevron nor Chevron Canada Limited
undertakes any obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or
otherwise.

SOURCE Chevron Canada Limited


Source: PR Newswire