31/07/2009 - 08:37

Chevron awards Wheatstone FEED contract

31/07/2009 - 08:37

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Chevron has taken the next step in its ambitious plans to become a major gas operator in WA, awarding the onshore front-end engineering and design contract for its $25 billion Wheatstone project to US company Bechtel Oil, Gas & Chemicals Inc.

Chevron awards Wheatstone FEED contract

Chevron has taken the next step in its ambitious plans to become a major gas operator in WA, awarding the onshore front-end engineering and design contract for its $25 billion Wheatstone project to US company Bechtel Oil, Gas & Chemicals Inc.

Bechtel will design the first phase of the project, which is scheduled to produce first gas in 2016.

A final decision to proceed with the project is expected in 2011.

The project involves two LNG processing "trains", each with a capacity of 4.3 million tonnes per annum, plus a domestic gas plant and export facilities at Ashburton North, west of Onslow.

Initial supply is expected to come from Chevron's wholly owned Wheatstone field and the Chevron-operated Iago field.

Chevron also is pushing ahead with its Gorgon LNG project on Barrow Island, which cleared a key environmental hurdle this week, subject to conditions.

The $50 billion Gorgon project is Australia's largest resources project. It's 85 kilometres from Wheatstone, which was announced as a focus for the company in March last year.

"The Chevron operated Wheatstone and Gorgon projects are set to position Chevron as a major LNG operator and will deliver energy, jobs and economic benefits to Australia, as well as assist in meeting expected long-term demand growth for natural gas in Asia," president of Chevron Asia Pacific Exploration and Production Company, Jim Blackwell, said in a statement on Friday.

Chevron Australia managing director Roy Krzywosinski said Wheatstone was an important part of the energy giant's plans to commercialise its natural gas resources in Australia and "future gas development opportunities in the western Carnarvon Basin, including third party gas".

Mr Krzywosinski said in March 2008 that Chevron would retain 100 per cent of the Wheatstone project, but the processing facility could take gas from other companies.

 

 

The announcement is below:

 

 

Chevron Australia Pty Ltd today announced the award of the onshore front-end engineering and design (FEED) contract for the Chevron- operated Wheatstone liquefied natural gas (LNG) and domestic gas plant in north-west Australia.

The onshore (downstream) FEED contract for the Wheatstone LNG and domestic gas plant and export facilities at Ashburton North, 12 kilometres west of Onslow, was awarded to Bechtel Oil, Gas & Chemicals Inc.

The FEED contract is for the design of the first phase of the project, which includes two LNG processing trains each with a capacity of 4.3 million tonnes per annum, and a domestic gas plant. Initial supply is expected to come from Chevron's 100 percent interest in the Wheatstone field and the Chevron operated Iago field.

President of Chevron Asia Pacific Exploration and Production Company, Jim Blackwell, acknowledged the FEED award, as well as the earlier results of a successful exploration and appraisal program at the Wheatstone and Iago fields, as key achievements for the Wheatstone Project.

"The Chevron operated Wheatstone and Gorgon Projects are set to position Chevron as a major LNG operator and will deliver energy, jobs and economic benefits to Australia, as well as assist in meeting expected long-term demand growth for natural gas in Asia," said Blackwell.

The Wheatstone Project is one of Australia's largest resource projects, offering significant economic benefits including an estimated 6,500 direct and indirect jobs, government revenue and local business opportunities for generations of Australians. A final investment decision is expected in 2011.

Chevron Australia Managing Director Roy Krzywosinski added, "Wheatstone is a key part of our plans to commercialise our significant natural gas resource base in Australia and also future gas development opportunities in the western Carnarvon Basin, including third party gas.

"We've been making good progress on the Wheatstone Project including the selection of a site at Ashburton North; progressing with key environmental approvals; undertaking environmental, engineering and social impact studies; and meeting with key stakeholders," said Krzywosinski.

Discovered in 2004, the Wheatstone field is located in the WA-253-P and WA-17-R permit areas. 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 Chevron has a majority holding. Together, these fields hold enough natural gas to supply a two train LNG development.

Chevron is one of the world's leading integrated energy companies and through its Australian subsidiary, has been present in Australia for more than 50 years. With the ingenuity and commitment of more than 1,400 people, Chevron Australia manages its equal one-sixth interest in the North West Shelf Venture, operates Australia's largest onshore oilfield on Barrow Island and the Thevenard Island oilfields, and leads the development of the Gorgon and Wheatstone natural gas projects.

The company is also a participant in the Browse liquefied natural gas development and is a significant investor in exploration offshore north-west Australia, one of Chevron's four global focus areas for exploration. In addition, Chevron's Perth-based Global Technology Centre provides technology support and solutions to the company's operations in Australia and around the world. www.chevron.com/australia

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