25/02/2009 - 11:04

Chevron advances Wheatstone plans

25/02/2009 - 11:04

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Chevron Corporation says it is a step closer to commercialising its Wheatstone project after exploration of two natural gas fields showed there were enough resources to support a two-train development.

Chevron advances Wheatstone plans

Chevron Corporation says it is a step closer to commercialising its Wheatstone project after exploration of two natural gas fields showed there were enough resources to support a two-train development.

Following analysis of an appraisal program of the Wheatstone and Iago gas fields, Chevron said the two fields will support a pair of plants for a liquefied natural gas and domestic gas projects.

A spokesperson said Chevron is not disclosing how much gas the two fields hold.

In March last year, Chevron announced the project had a resource estimate of 4.5 trillion cubic feet and the initial development would consist of two processing trains with a capacity of 5 million tonnes per annum each.

"The success with the recent appraisal program moves the Wheatstone project a step closer to commercialisation," Chevron Global Upstream and Gas executive vice president George Kirkland said.

"The Wheatstone project offers a strategic opportunity for Chevron and third parties to develop natural gas resources in the western Carnarvon Basin, as well as deliver energy, jobs and economic benefits to Australia."

Chevron has chosen to locate the Wheatstone project at Ashburton North near Onslow and today said it expects to enter front-end engineering and design in the second half of 2009.

The company is seeking approval for a 25 million tonner per annum LNG and domestic gas plant complex.

First gas production from Wheatstone is slated for 2015

 

 

 

The announcement is below:

 

 

Chevron Corporation (NYSE: CVX) today announced the successful results of a seven-well exploration and appraisal program for the Wheatstone and Iago fields in northwest Australia. Following the completion and analysis of the appraisal program, the fields are estimated to hold enough natural gas resources to support a two-train Wheatstone liquefied natural gas (LNG) and domestic gas project.

George Kirkland, executive vice president, Chevron Global Upstream and Gas, said, "The success with the recent appraisal program moves the Wheatstone project a step closer to commercialization. The Wheatstone project offers a strategic opportunity for Chevron and third parties to develop natural gas resources in the western Carnarvon Basin, as well as deliver energy, jobs and economic benefits to Australia."

Chevron announced plans to locate the Wheatstone project at Ashburton North near Onslow in late 2008 and expects to enter front-end engineering and design in the second half of 2009.

"The Wheatstone project, together with Gorgon, is an important part of Chevron's strategy to develop its large natural gas resource base in Australia and be a leading supplier of LNG. In support of these two major capital projects, the company intends to undertake its largest-ever drilling campaign in Australia," Kirkland added.

Discovered in 2004, the wholly owned Wheatstone Field is located in the WA-253-P and WA-17-R permit areas. The field is 125 miles (200 kilometers) north of Onslow in water depths of around 650 feet (200 meters). The adjacent Iago Field was discovered in 2000 and spans two retention permits, WA-17-R, which is wholly owned by Chevron Australia, and WA-16-R, in which Shell Development (Australia) Pty Ltd. has a one-third share, with Chevron holding the remainder.

The offshore northwest shelf of Australia is one of four exploration focus areas for Chevron. During 2009, Chevron plans to conduct a large drilling program with two rigs scheduled to drill multiple exploration and appraisal wells in its operated acreage

 

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