Documents filed as part of a restructure of Chevron’s Australian operations have given a glimpse into the finances of the $13 billion-a-year oil and gas producer.
Documents filed as part of a restructure of Chevron’s Australian operations have given a glimpse into the finances of the $13 billion-a-year oil and gas producer.
Chevron combined two major local entities last year in a bid to simplify its Australian interests, which include operating the huge Gorgon and Wheatstone LNG plants.
The two businesses in the restructure, Chevron Australia Pty Ltd and Texaco Australia Pty Ltd, both held interests in the Gorgon, Wheatstone and WA Oil operations. The CAPL entity also controlled Chevron’s share of the North West Shelf Venture.
That had meant there were complex relationships between the two parties, including tolling agreements and payments for administration and back office expenses.
The two units dated back to before the global merger of Chevron and Texaco in 2000.
Combined, the two entities had assets of $US41.9 billion ($61 billion) and creditors of $US4 billion, according to an independent expert report by KPMG which informed the transaction.
The US supermajor and its international partners invested about $US90 billion combined into Western Australia when it built the Gorgon and Wheatstone plants.
Gorgon was estimated to cost $US54 billion (Chevron owns 47.3 per cent), and Wheatstone about $US34 billion (with Chevron holding 64 per cent).
The KPMG report showed revenue was $US9.3 billion ($13.6 billion) in the year to December 2021, and earnings before interest and tax were just less than $US3.1 billion.
Profit was $US1.9 billion.
It was reported last year that Chevron’s tax bill was set to rise significantly in 2022 and beyond as the company depleted deductions from its major capital investment program in Australia.
Chevron still has other business entities in Australia, including Chevron Energy Technology and its exploration companies. These were not involved in the restructure.
King & Wood Mallesons advised Chevron on the deal.
Separately, documents filed with the Australian Securities and Investment Commission in 2022 also offered insight into the value of Chevron’s 16.7 per cent stake in the North West Shelf Venture.
That had been for sale but was pulled from the market last year.
Chevron carried the asset on its books at a value of $US1.3 billion ($1.9 billion) at the end of 2021.
The asset value was partially balanced by a $US430 million ($630 million) liability provisioned for the eventual rehabilitation of the site, which includes five processing trains on the Burrup Peninsula.
