SYDNEY, Oct 19 - U.S. oil company Chevron Corp (CVX.N) has made a gas discovery off west Australia, which could underpin its plans for the expansion of the $37 billion Gorgon liquefied natural gas project.
Chevron, operator and 47.75-percent owner of the Gorgon project, said late on Sunday it had achieved drilling success at its Achilles-1 exploration well in the offshore Carnarvon Basin, encountering approximately 100 metres of net gas pay.
The Achilles-1 well lies within WA-374-P permit area where Chevron is the operator with a 50 percent interest. Royal Dutch Shell Plc (RDSa.L) and Exxon Mobil Corp (XOM.N) each hold 25 percent of both the permit and the overall Gorgon project.
The three partners recently gave the go-ahead for the first phase of the project, for 15 million tonnes a year from 2014. They expect to make a decision within 12-18 months on expanding the Barrow Island LNG plant from an initial three trains to five.
"The success of our drilling programme will provide additional natural gas to underpin the Gorgon and Wheatstone projects," Chevron Australia managing director Roy Krzywosinski said in a statement.
Chevron is also leading development of the Wheatstone LNG project, which is scheduled to start shipping gas in 2016. A final investment decision on this project is expected in 2011.
Chevron, operator and 47.75-percent owner of the Gorgon project, said late on Sunday it had achieved drilling success at its Achilles-1 exploration well in the offshore Carnarvon Basin, encountering approximately 100 metres of net gas pay.
The Achilles-1 well lies within WA-374-P permit area where Chevron is the operator with a 50 percent interest. Royal Dutch Shell Plc (RDSa.L) and Exxon Mobil Corp (XOM.N) each hold 25 percent of both the permit and the overall Gorgon project.
The three partners recently gave the go-ahead for the first phase of the project, for 15 million tonnes a year from 2014. They expect to make a decision within 12-18 months on expanding the Barrow Island LNG plant from an initial three trains to five.
"The success of our drilling programme will provide additional natural gas to underpin the Gorgon and Wheatstone projects," Chevron Australia managing director Roy Krzywosinski said in a statement.
Chevron is also leading development of the Wheatstone LNG project, which is scheduled to start shipping gas in 2016. A final investment decision on this project is expected in 2011.
