PDVSA, CHEVRON EYE HEAVY OIL DEAL

March 2, 1992

Venezuela is promoting heavy oil. Chevron Corp. and Petroleos de Venezuela SA have signed a letter of intent to study joint ventures in production, refining, and upgrading of heavy and extra heavy crudes from Venezuela's Orinoco oil belt as well as other exploration and production opportunities in Venezuela. Veba Oel and Pdvsa are near agreement on a project to upgrade Orinoco heavy crude. And Pdvsa is discussing heavy oil coking and deasphaltization projects separately with Conoco Inc.

Venezuela is promoting heavy oil.

Chevron Corp. and Petroleos de Venezuela SA have signed a letter of intent to study joint ventures in production, refining, and upgrading of heavy and extra heavy crudes from Venezuela's Orinoco oil belt as well as other exploration and production opportunities in Venezuela. Veba Oel and Pdvsa are near agreement on a project to upgrade Orinoco heavy crude. And Pdvsa is discussing heavy oil coking and deasphaltization projects separately with Conoco Inc. and Ste. Nationale Elf Aquitaine.