1. SJV Business Unit Welcome to the Kern River Field

2. SJV Business Unit Kern River Field Visit Chairman’s Tour June 11, 2003 Discussion Topics Kern River Overview Applied Technology Field Tour (0-102-5.70) Stauffer Lease (HSE) Eastridge Cogen (Tech. & CSOC) Station 36 (OE) Desired Outcomes Awareness of Operation Awareness of Practical Application Awareness of Key Enablers

3. SJV Business Unit Kern River - Quick Facts Field Discovered:1899 Cum. Production:1.8 Billion Rem. Reserves: 400 MMBO OEG Production:102,000 Barrels/Day Water Production:900,000 Barrels/Day Steam Injection:300,000 Barrels/Day Active Wells:10,000 Electricity Gen:680 Megawatts Personnel:250 CVX/350 BP KERN RIVER OFFICE COGEN PLANT FIELD BOUNDERY

4. SJV Business Unit Kern River Financial Performance 200120022003 Net OEG Production (MBD)111106101 AT Operational Earnings ($MM) 376353310 Operating Expense ($MM) Fuel & Steam214145162 Non-Fuel126 94 95 Total Expense340239257 Capital Expenditures ($ MM)343026 Kern River Crude ($/bbl)18.8220.6319.90 CA Border ($/MMBtu) 8.48 3.184.17

5. SJV Business Unit Kern River Field Product Flow Diagram 102 MBO/D 900 MBW/D 500 MBW/D STEAM 300 MBS/D OIL SALE$ SEPARATION (Station 36) STEAM INJECTION (1200 wells) WATER TREATMENT (Station 36) COGEN POWER SALE$ WATER ELECTRICITY 40 MW AGRICULTURE SALE$ PRODUCED FLUIDS (8500 wells) AUTOMATIC WELL TEST (300 Sites) 640 MW

6. SJV Business Unit Kern River Performance Operational Excellence – Every Day SAFETY & ENVIRONMENTAL (0) - Setting unmistakable priorities – visible leadership - Engage all employees & business partners - Apply proven processes (e.g., BBS, MOC, spill prevention) - Reduce operational incidents through improved reliability PRODUCTION (102) - Apply key technologies (e.g., heat management) - Utilize CSOC principles on projects of all sizes OPERATING COST ($5.70) - Apply 16 key business unit OE process - Use lean sigma to identify & incorporate reliability improvements - Embrace a computerized, centralized maintenance management system

7. SJV Business Unit Working Towards Target Zero Kern River Safety & Environmental Performance

8. SJV Business Unit Kern River Performance Operational Excellence – Every Day SAFETY & ENVIRONMENTAL (0) - Setting unmistakable priorities – visible leadership - Engage all employees & business partners - Apply proven processes (e.g., BBS, MOC, spill prevention) - Reduce operational incidents through improved reliability PRODUCTION (102) - Apply key technologies (e.g., heat management) - Utilize CSOC principles on projects of all sizes OPERATING COST ($5.70) - Apply 16 key business unit OE process - Use lean sigma to identify & incorporate reliability improvements - Embrace a computerized, centralized maintenance management system

9. SJV Business Unit Annual Savings $1 MM Direct Savings $ 1 MM/year Kern River – Operational Excellence Operating Cost Enhancement Using Lean Sigma