Chevron makes gas discovery off WA coast

Chevron has made a deepwater gas discovery in the Carnarvon Basin offshore Western Australia, which could support the company's long-term growth plans for the Gorgon project.

The company has been drilling an exploration well, Satyr-1, in the WA-374-P permit area about 160km northwest of Onslow in the Greater Gorgon area gas fields.

The well was drilled to a total depth of 4,560 metres after being spudded at 1,070m water depth, and results indicate about 130m of net gas pay.

Chevron is the operator of the permit area with a 50 per cent interest while Shell and ExxonMobil each hold a 25 per cent stake.

Chevron president of Asia Pacific exploration and production said the success of Satyr-1 highlights the quality of the company's exploration capability in the region and the significance of Australia to Chevron's energy portfolio.

Chevron has started the development of the $43 billion Gorgon liquefied natural gas project, which is expected to produce first gas in the middle of next decade.

It has an estimated 40 trillion cubic feet of gas at its various fields and will be operating for at least 40 years.

The new gas discovery will allow the operation, Australia's largest resource project, to operate longer.