MMA Inks Sublease with Chevron for Gorgon Project Offshore Australia
MMA has signed a formal Sublease with Chevron Australia Pty Ltd (Chevron) to support the development of the Gorgon Project. MMA announced in May 2008 that it had entered into an Agreement to Sublease with Chevron and negotiations between the parties have now been finalized.
The Sublease takes in an area of approximately 56,000 square meters (about 40%) of MMA's Dampier multi user Supply Base and will be developed by MMA as part of its plans to build a long term facility able to be used for many future projects. During the term of the Sublease the facility will be used by Chevron to underpin the movement of cargo between Dampier and Barrow Island.
The Sublease term is five years with an option to extend another five years. The cost of the upgrade work is estimated to be in the order of A$50 million. Lease payments will commence upon occupancy of the leased area by Chevron. MMA will finance the upgrade work through existing cash reserves and debt facilities.
The Gorgon Project is a joint venture between Chevron (Operator), ExxonMobil and Shell to develop the Greater Gorgon gas fields, located between 130km and 200km off the north-west coast of Western Australia.
The Managing Director, Jeffrey Weber, said, "Signing of the Sublease represents another positive step forward in the relationship between MMA and Chevron and is an encouraging outcome for the overall development of the Gorgon Project. MMA's Dampier Supply Base will, once the upgrade work is completed, provide a key element of the construction supply chain. MMA is delighted to be part of this world scale project and looks forward to working with Chevron to achieve a successful result."
The contract value is up to approximately A$100 million over the initial term of the lease.
MMA is also currently undertaking a major upgrade of the Dampier Supply Base wharf which will effectively double its wharf capacity. MMA is managing the construction of this wharf directly and is pleased to be able to report that it is running on time and on budget. The overall wharf extension is expected to be completed by May 2009.
MMA also recently completed the construction of a 2,250 square meter warehouse in Dampier. Both of these infrastructure developments will support multiple clients operating in the region in addition to the Gorgon
Operates 13 Offshore Rigs
- ExxonMobil Says Julia, Hadrian South Operations Back To Normal After Nate (Oct 10)
- Iraq's Talks with Exxon on Southern Oilfields in Final Stages-Minister (Oct 09)
- U.S. Gulf Oil Producers Start Evacuating Staff Ahead of Tropical Storm Nate (Oct 05)
Company: Shell more info
Operates 27 Offshore Rigs
- API Panel Member: Voluntary Methane Program Forthcoming (Oct 06)
- Eni Bets Big on Zohr Explorer Finding New Treasure (Oct 06)
- Shell, Varo End Talks on Germany Refinery Stake Sale (Oct 06)
Company: Chevron Corporation more info
- Chevron Approves New Tech Investment To Raise Output At North Sea Field (Oct 20)
- Canada's Keyera Signs Pact With Chevron To Transport, Store NGL (Oct 10)
- Chevron Starts LNG Output at Australia's Wheatstone (Oct 09)
Company: Mermaid more info
- Keppel to Build Newbuild Jackups for Mermaid's AOD (Dec 02)
- Mermaid Enters JV with Gentas to Form Subtech S.A. (Nov 11)
- Keppel FELS Dives into LOI with Mermaid for Jackups (Oct 22)