Greater Gorgon Participants Integrate Interests in Australian Project

ChevronTexaco Corp. has reached a Framework Agreement between its Australian affiliate and joint-venture participants to align their equity interests in the giant gas resources of the Greater Gorgon Area, offshore Western Australia.

The agreement provides the basis for the combined development of natural gas at Gorgon and nearby gas fields as one world-scale project.

The joint-venture participants have agreed to align their equity interests in individual licenses in the Greater Gorgon area. The new interests will be: ChevronTexaco (50%), ExxonMobil (25%) and Shell (25%).

George Kirkland, ChevronTexaco executive vice president for Upstream and Gas, said, "The framework agreement reflects ChevronTexaco's strategy to develop its gas resources and lead the industry in the selection and execution of major capital projects. It will help ensure that the world-class gas fields of the Greater Gorgon Area are developed in the most technically and economically efficient way to meet the growing demand for gas in the Asia-Pacific region and North America."

The Greater Gorgon Area is one of the largest undeveloped natural gas accumulations in the region. "The development of this huge gas resource will truly create a new legacy asset for our company," Kirkland added.

The managing director of ChevronTexaco Australia, Jay Johnson, said that "The agreement is an important step forward for Australia's next major gas project and will bring benefits to the participants and the many stakeholders here in Australia.

"Marketing for Gorgon gas is well advanced, the government permitting and approvals process for the development is on track, and we have commenced preliminary front-end engineering and design activities," Johnson said.

The Western Australian government and the joint venture participants in 2003 signed a State Agreement to facilitate the development of the proposed 10 million-metric-ton-per-year Gorgon liquefied natural gas and domestic gas project on Barrow Island, offshore Western Australia that will use gas sourced from the Greater Gorgon Area. The agreement has been ratified by the Western Australian State Parliament.

The Framework Agreement announced today is consistent with the State Agreement and the Gorgon Environmental, Social and Economic (ESE) Review which preceded it.

ChevronTexaco Australia Pty. Ltd. is leading the development of, and is a joint-venture participant in, the Greater Gorgon Area licenses; is a joint-venture participant in the North West Shelf Venture; and is operator and joint venture participant in the Barrow Island and Thevenard Island oil fields. All are located off the northwest coast of Australia.

Find out more about:
ChevronTexaco
Shell
ExxonMobil

Search for more News

Posted 06/04/05

Back