Amazon Defense Coalition: Chevron Botching Ecuador Case, Says Influential Report

$27 Billion Liability in Ecuador "Poorly Handled" by Chevron`s Top Management,
Analyst Tells Leading Trade Publication
NEW YORK--(Business Wire)--
Platt`s Oilgram News, the leading trade publication for the oil industry, is
reporting that "momentum seems to be growing against Chevron" in the
long-running environmental case brought by Amazon communities in Ecuador that
could lead to a $27 billion judgment later this year.

The article, published on Tuesday under the headline "Concerns Grow in
Chevron-Ecuador Suit", quotes a leading oil industry analyst, Fadel Gheit, as
saying the Ecuador case "is a mess in the ground and in public opinion" and has
been "very poorly handled" by Chevron. The $27 billion liability is expected to
be a major topic today at Chevron`s annual meeting, with attention focused on
how Chevron`s Board of Directors had not independently vetted management`s
handling of the matter.

The lawsuit, being held in Ecuador at Chevron`s request, will determine if
Chevron will be forced to pay for a clean-up of the more than 18 billion gallons
of toxic waste dumped by Texaco (now Chevron) when it operated an oil concession
in the Amazon from 1964 to 1990. A team of court-appointed experts has assessed
damages at up to $27.3 billion and a decision is expected later this year.

Several scientific experts consider the disaster to be the worst oil-related
contamination on the planet. A team of U.S.-based reviewers found that the
damages number is consistent with the cost of other large environmental
clean-ups around the world.

Gheit, who works for Oppenheimer, was quoted in reference to Chevron`s Ecuador
liability as saying: "I think the longer it lingers the more it will cost. I
would settle and cut my losses. Time is not on their side. The sooner they
resolve it the better off shareholders are. I don`t think it will cost $27
billion, but [it] will certainly cost a hell of a lot more than $1.8 billion"
that Chevron has set aside for liabilities.

The article also quoted Barclay`s Capital analyst Paul Cheng as saying, in
reference to the Chevron liability, that "we would expect that any negative
ruling [in Ecuador] would be damaging to the stock`s near-term performance, and
we would be an aggressive buyer to take advantage of any weakness."

Platt's Oilgram News is widely recognized as the standard publication
chronicling the oil and gas energy sector and its published rates are used as a
benchmark within the industry. The article reported on concerns about Chevron
being raised by the New York attorney general and public and private funds.

The article quotes a letter sent to Chevron by New York Attorney General Andrew
Cuomo saying "this office has broad authority to investigate and pursue
allegations of financial fraud and material misstatements in connection with
publicly traded companies." Cuomo said he was looking into "Chevron`s
characterization of available legal defenses" and asked Chevron to estimate
"possible damages if found liable … [and] what if any reserves have been
established in contemplation of such damages being assessed against Chevron."

The Cuomo investigation is being brought under New York`s Martin Act, which
allows for both civil and criminal liability for fraud. Several New York
shareholders had requested the probe to determine if Chevron is complying with
securities laws.

Leaders from Ecuador`s Amazon region are expected to attend the shareholder`s
meeting today and confront Chevron CEO David O`Reilly over the company`s
allegedly misleading assertions about Ecuador.

About the Amazon Defense Coalition

The Amazon Defense Coalition represents dozens of rainforest communities and
five indigenous groups that inhabit Ecuador`s Northern Amazon region. The
mission of the Coalition is to protect the environment and secure social justice
through grass roots organizing, political advocacy, and litigation. Two of its
leaders, Luis Yanza and Pablo Fajardo, are recipients of the prestigious Goldman
Environmental Prize.

Amazon Defense Coalition
Karen Hinton, 703-798-3109
Karen@hintoncommunications.com

Copyright Business Wire 2009