EXHIBIT 99.1


[LOGO] NEW ENERGY COMPANY

                                               NEWS RELEASE
                                             -----------------------------------
FOR IMMEDIATE RELEASE                          CONTACT:
July 22, 2002                                  Barbara B. Forbes
                                               Director of Investor Relations
                                               713-374-4870

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                 NUEVO APPOINTS KPMG LLP AS INDEPENDENT AUDITOR

HOUSTON - Nuevo Energy Company (NYSE: NEV) today announced that its Board of
Directors, at the recommendation of its Audit Committee, has appointed KPMG LLP
as the Company's independent auditor, replacing Arthur Andersen LLP. Nuevo's
decision to change its independent auditor was not the result of any
disagreement between the Company and Arthur Andersen on any matter of accounting
principles or practices, financial statement disclosure, or auditing scope or
procedure.

KMPG will perform the audit of Nuevo's financial statements for the fiscal year
ending December 31, 2002. In this regard, KPMG will begin immediately to review
Nuevo's quarterly financial statements for the second quarter ended June 30,
2002, and finalize its quarterly review prior to the filing of the Company's
Form 10-Q.

Nuevo Energy Company is a Houston, Texas-based company primarily engaged in the
acquisition, exploitation, development, production, and exploration of crude oil
and natural gas. Nuevo's domestic properties are located onshore and offshore
California. Nuevo is the largest independent producer of oil and gas in
California. The Company's international properties are located offshore the
Republic of Congo in West Africa and onshore the Republic of Tunisia in North
Africa. To learn more about Nuevo, please refer to the Company's internet site
at http://www.nuevoenergy.com.

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         THIS PRESS RELEASE INCLUDES "FORWARD-LOOKING" STATEMENTS WITHIN THE
MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, SECTION 21E OF
THE SECURITIES EXCHANGE ACT OF 1934 AND THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACTS INCLUDED
IN THIS PRESS RELEASE, INCLUDING WITHOUT LIMITATION, ESTIMATED QUANTITIES AND
NET PRESENT VALUE OF RESERVES, ESTIMATED PRODUCTION VOLUMES, BUSINESS
STRATEGIES, PLANS AND OBJECTIVES OF MANAGEMENT OF THE COMPANY FOR FUTURE
OPERATIONS AND COVENANT COMPLIANCE AND CAPITAL EXPENDITURES ARE FORWARD-LOOKING
STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE ASSUMPTIONS UPON WHICH SUCH
FORWARD-LOOKING STATEMENTS ARE BASED ARE REASONABLE, IT CAN GIVE NO ASSURANCES
THAT SUCH ASSUMPTIONS WILL PROVE TO HAVE BEEN CORRECT. IMPORTANT FACTORS THAT
COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE COMPANY'S EXPECTATIONS
("CAUTIONARY STATEMENTS") AND PROJECTIONS INCLUDE VOLATILITY IN OIL AND GAS
PRICES, OPERATING RISKS, THE RISKS ASSOCIATED WITH RESERVE REPLACEMENT,
COMPETITION FROM OTHER COMPANIES AND OTHER FACTORS SET FORTH IN THE COMPANY'S
ANNUAL REPORT ON FORM 10-K AND OTHER FILINGS MADE WITH THE SEC AND INCORPORATED
HEREIN. ALL SUBSEQUENT WRITTEN AND ORAL FORWARD-LOOKING STATEMENTS AND
PROJECTIONS ATTRIBUTABLE TO THE COMPANY OR TO PERSONS ACTING ON ITS BEHALF ARE
EXPRESSLY QUALIFIED BY THE CAUTIONARY STATEMENTS.