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Chevron Corporation (CVX) announced today that its fully-owned subsidiary Unocal East China Sea, Ltd. began natural gas production from the first stage of the Chuandongbei Project in southwest China. Chuandongbei is one of the largest onshore gas projects developed by an international oil company and a national oil company in China.

“First gas for the Chuandongbei Project represents a significant milestone and highlights Chevron’s leadership in the development of sour gas resources,” said Jay Johnson, executive vice president, Upstream. “The project will be an important supplier of clean and affordable energy to the rapidly growing economy in southwest China.”

The Chuandongbei Project covers over 800 square kilometers in Sichuan Province and the Chongqing Municipality. Unocal East China Sea, Ltd. holds a 49 percent participating interest as the operator and China National Petroleum Corporation holds a 51 participating percent interest.

The start-up of the first train commences stage one of the project. Production is planned to ramp up over coming months as all three trains come on line. The three trains have a combined design outlet capacity of 258 million cubic feet of natural gas per day. The Chuandongbei Project is estimated to contain potentially recoverable natural gas resources of 3 trillion cubic feet.

Melody Meyer, president, Chevron Asia Pacific Exploration and Production Company stated, “First gas at Chuandongbei represents the next step in our energy partnership with China. Chevron has worked closely with China National Petroleum Corporation and the Chinese government at all levels to develop the project safely and reliably. The project has provided jobs and business opportunities for the local community, and will continue to contribute to the regional economy for decades.”

Chevron Corporation is one of the world’s leading integrated energy companies. 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 petrochemicals and additives; generates power and produces geothermal energy; and develops and deploys technologies that enhance business value in every aspect of the company’s operations. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.