of the Congo  Confirmed two crude oil discoveries in the offshore Moho-Bilondo permit. Evaluation and development studies were undertaken to appraise the discoveries, in which Chevron holds a 32 percent nonoperated working interest.

     Thailand  Signed an agreement to increase sales of natural gas from company-operated Blocks 10, 11, 12 and 13 in the Gulf of Thailand to PTT Public Company Limited. Chevron has ownership interests ranging from 60 percent to 80 percent in the blocks, which received 10-year production-period extensions to 2022. The company was also granted the concession rights for a six-year period to four prospective offshore petroleum blocks, three of which it will operate.

     Trinidad and Tobago  Signed an agreement to sell natural gas to the National Gas Company of Trinidad and Tobago for 11 years with an option for a four-year extension. The gas is expected to be sourced from Chevron’s 50 percent-owned East Coast Marine Area.

     United States  Announced that first production from the Tahiti project in the deepwater Gulf of Mexico is expected by the third quarter 2009. The start-up is approximately one year later than originally planned due to metallurgical problems with the mooring shackles for the floating production facility.

Downstream

Benelux Countries  Sold the company’s 31 percent interest in the Nerefco Refinery and related assets in the Netherlands, and the company’s fuels marketing businesses in Belgium, Luxembourg and the Netherlands, resulting in gains totaling $960 million.

 South Korea   Completed construction and commissioned new facilities associated with a $1.5 billion upgrade at the 50 percent-owned GS Caltex Yeosu Refinery, enabling the refinery to process heavier and higher-sulfur crude oils and increase the production of gasoline, diesel and other light products.

     United States   Approved plans at the company’s refinery in Pascagoula, Mississippi, for the construction of a Continuous Catalyst Regeneration unit, which is expected to increase gasoline production by 10 percent, or 600,000 gallons per day, by mid-2010. At the refinery in El Segundo, California, modifications were completed to enable the processing of heavier crude oils into light transportation fuels and other refined products.

Other

Common Stock Dividends   Increased the company’s quarterly common stock dividend by 11.5 percent in April to $0.58 per share, marking the 20th consecutive year the company has increased its annual dividend payment.

     Common Stock Repurchase Program   Approved a program in September to acquire up to $15 billion of the company’s common stock over a period of up to three years, which followed three stock repurchase programs of $5 billion each that were completed in 2005, 2006 and September 2007.

     Dynegy   Sold the company’s common stock investment in Dynegy Inc., resulting in a gain of $680 million.

Results of Operations

Major Operating Areas  The following section presents the results of operations for the company’s business segments – upstream, downstream and chemicals – as well as for “all other,” which includes mining, power generation businesses, the various companies and