Chevron's Gorgon project receives $2 billion investment approval

The Australian unit, owned by the U.S. oil company Chevron, announced on Friday that partners in the Gorgon Joint Venture had sanctioned the A$3 Billion ($1,98 Billion) Gorgon Stage 3 Development off the northwest coast of Western Australia.

The project will serve as a backfill to the LNG export concern, and will connect the offshore Geryon & Eurytion gas fields with Gorgon's infrastructure on Barrow Island.

Chevron plans to drill up to 40 wells in seven fields, with a field life of 2070.

Chevron submitted its project proposal to the offshore environmental regulator in August 2024. The proposal was then accepted by them in November after they received public comments.

The Chevron operated Gorgon Project is owned by the Australian units of Chevron Exxon Mobil and Shell, who collectively hold 97.3%. Japan's Osaka Gas JERA, and U.S. based MidOcean own the remaining stake.

Balaji Krishnamurthy, Chevron Australia's president, said that in addition to LNG exports the company will be able to supply domestic gas on a long-term basis for Western Australia's households and industries.

All LNG projects are subject to a 15% domestic reservation policy.

Chevron Australia said that Gorgon is capable of producing 300 terajoules of gas per day for the Western Australia Market and 15.6 millions tons of LNG each year.

Shell's plans to drill at the Crux Field, which is also located off the coast of northern Australia, was accepted by regulators last week. Crux's LNG will be used to backfill the Prelude floating vessel.

ConocoPhillips, a U.S. oil firm, has completed its southern Australia refinery.

first exploration well

The second well will be built in a location nearby. (1 Australian dollar = 1.5135 dollars) (Reporting and editing by Alan Barona, Thomas Derpinghaus, and Sherin Sunny from Bengaluru)

(source: Reuters)