Chevron Throws the Brakes on Current and Future Drilling Offshore Brazil

SAN RAMON, Calif., November 23, 2011 – Chevron Corporation (NYSE: CVX) today reports that while its subsidiary, Chevron Brasil Upstream Frade Ltda., has not received formal notice from Brazil’s National Petroleum Agency (ANP) suspending its drilling license, the company has voluntarily suspended its current and future drilling operations, offshore Brazil. The voluntary suspension includes the company’s permitted pre-salt wells in the Frade field with the exception of current plug and abandonment activities. The suspension is indefinite. Chevron acknowledges, however, that ANP has posted a notice of suspension to its website.

Chevron’s decision to suspend its drilling operations has no impact on its current production in the Frade field or on other Frade field operations. Production from the Frade field is approximately 79,000 barrels of oil equivalent per day (approximately 36,000 barrels net).

Chevron had previously suspended development drilling in the Frade field on November 9 after it became aware of oil migrating from seep lines in the ocean floor.

Chevron also reports that the volume of oil currently contained in the sheen on the ocean’s surface has been further reduced to about one barrel through cleaning and dispersion methods approved by Brazilian authorities. Chevron was successful in stopping the primary source of the oil sheen ten days ago.

The company reiterated that it adheres to all the rules and regulation of the Government of Brazil and its agencies.

Updated video footage of the seeps on the ocean floor and current photos of the sheen on the ocean’s surface are available on Chevron’s Media Updates page.

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.