Chevron Moves Wheatstone Closer to Commercialization

Chevron has announced the award of a major front-end engineering and design (FEED) contract for the first phase of the Wheatstone natural gas development in northwest Australia.

Chevron awarded the contract for the first phase of the project -- which consists of two liquefied natural gas (LNG) processing trains each with a capacity of about 4.3 million tons per year and a domestic gas plant -- to Bechtel Oil, Gas & Chemicals, Inc. The facility will be supplied initially from Chevron's 100 percent interest in the Wheatstone Field and the Chevron-operated Iago Field.

The facility will be located at Ashburton North on the mainland of Western Australia.

"Awarding the contract moves the Wheatstone project a step closer to commercialization, assists in realizing our strategy of developing our large natural-gas resource base in Australia and further enhances our position as a leading supplier of LNG in the Asia-Pacific region and internationally," said George Kirkland, executive vice president, Global Upstream and Gas, Chevron Corporation.

"We are committed to moving forward our two big Australian LNG projects -- Wheatstone and the Gorgon development," Kirkland said.

Chevron expects to make a final investment decision on the Wheatstone project in 2011.

Discovered in 2004, Chevron's Wheatstone Field is located in the WA-253-P and WA-17-R permit areas in water depths of around 650 feet (200 meters). The adjacent Iago Field was discovered in 2000 and spans two retention permits, WA-17-R, which is wholly owned by Chevron Australia, and WA-16-R, which Chevron has a majority interest. Together, these fields hold enough natural gas to supply a two-train LNG development.