ChevronTexaco announced that its wholly owned subsidiary Chevron U.S.A. Inc. has awarded two major engineering contracts for the development of the Tahiti Project's subsea systems and floating production facility, to be located in Green Canyon 640, 641 and 596, approximately 190 miles southwest of New Orleans.

Under the agreement, Technip Offshore, Inc. will perform front-end engineering and design (FEED) for the proposed truss spar floating production facility concept. Mustang Engineering will perform FEED for the Tahiti topsides oil and gas processing facilities. Construction contracts are expected to be awarded in the second quarter of 2005.

"We are pleased to announce these key contract awards that move our Tahiti Project closer to first production," said Ray Wilcox, vice president of ChevronTexaco Corp. and president of ChevronTexaco Exploration and Production Co. "Tahiti is a significant component of ChevronTexaco's upstream growth strategy. It will also add considerably to our Gulf of Mexico deepwater portfolio."

The Tahiti Field will be developed from two subsea drill centers located near the two Tahiti appraisal wells located in Green Canyon 596 & 640, completed in early 2003. One of the wells encountered more than 1,000 feet of net pay, one of the most significant net pay accumulations in the history of the deepwater Gulf of Mexico.

"We are pleased with the progress made to date in assessing the resource potential, evaluating development alternatives and awarding contracts for the Tahiti Project," said Kathleen Arthur, vice president of ChevronTexaco's Gulf of Mexico deepwater business unit. "Working together with joint-venture partners, considerable work has been completed; however, much work remains to finalize the field development plans."

Next steps for the project include front-end engineering and additional technical and commercial assessments. A production test of the discovery well and front-end engineering are scheduled to begin the second quarter of 2004.

ChevronTexaco is the operator of the Tahiti Project with 58 percent working interest. Tahiti partners are EnCana Gulf of Mexico LLC (25 percent work interest) and Shell Exploration & Production Company (17 percent working interest).