Chevron Makes Final Investment Decision To Construct Gorgon Natural Gas Project In Australia

Published: 13-Sep-2009

Chevron Corporation (Chevron) announced that its subsidiary, Chevron Australia Pty Ltd, will proceed with the development of the Gorgon natural gas project, offshore Western Australia. Development proposals for the project was approved by the Western Australian State Premier, Colin Barnett and production licenses were granted by the Australian Minister for Resources and Energy, Martin Ferguson AM.

"With a total resource base of more than 40 trillion cubic feet of gas and an estimated economic life of at least 40 years, Gorgon will be a major contributor to our company's future growth," said Chevron's Chairman, Dave O'Reilly.

"Gorgon adds significant long-term reserves and production for Chevron, bolstering our strong resource replacement and underscoring the importance of Australia to our growing natural gas business," said George Kirkland, executive vice president, Global Upstream and Gas, Chevron.

The Gorgon project, operated by Chevron (50%) in joint venture with Australian subsidiaries of Exxon Mobil Corporation (25%) and Royal Dutch Shell Plc (25%), is currently estimated to cost AUD43 billion ($37 billion) for the first phase of development. First gas is planned for 2014.

The Gorgon area's projected natural gas resources are equivalent to 6.7 billion barrels of oil. The project's scope includes a three-train, 15 million-metric-ton-per-year liquefied natural gas (LNG) facility and a domestic gas plant.

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