Chevron to sell Thevenard interest following fall in yields

Chevron Australia Pty Ltd will sell its interest in the Thevenard Island oil production leases, following decreasing yields from the site due to natural depletion.

The Thevenard asset, located 25km from the mainland in the Carnarvon Basin, provides an island base for the processing and storage of hydrocarbons from the Saladin, Roller, Skate, Yammaderry, Cowle and Crest fields.

According to a Department of Industry and Resources report, total oil production on the project in 2006 was 173,890 kL, down from 210,367 in 2005 and 249,483 in 2004.

Chevron Australia managing director Jay Johnson said the decision was a business-driven one, and would enable the company to focus on higher impact opportunities within its portfolio.

The company owns 51.43 per cent of the asset, as well as operating it.

The full text of a company announcement is pasted below

Perth, 23 April 2007 - - Chevron Australia Pty Ltd and Chevron (TAPL) Pty Ltd (together 'Chevron') today advised of its intention to market the company's interest (51.43% and Operatorship) in the Thevenard Asset, located within the Carnarvon Basin, Western Australia.

Chevron Australia managing director, Jay Johnson, said the decision to seek competitive bids for Chevron's interest in the Thevenard Asset was a business-driven decision based on a thorough examination of the asset and how it aligns with Chevron's global growth strategy.

"This decision will enable Chevron to focus on higher impact opportunities within our Australasian portfolio whilst also creating an opportunity for another operator to develop the production and exploration potential within the Thevenard Asset," Mr Johnson said.

"Chevron takes great pride in our strong presence in Australia and our track record in operational excellence and environmental performance. We intend to ensure that all obligations in relation to the Thevenard Asset are fulfilled as part of this divestment opportunity."

Situated 25km from the Australian mainland, Thevenard Island provides an island base for the processing and storage of hydrocarbons from the Saladin, Roller, Skate, Yammaderry, Cowle and Crest fields.