Chevron has made a gas discovery in the Carnarvon Basin, offshore northwest Australia, underpinning an increase in resource potential for its US$54 billion Gorgon project.

The Isosceles-1 exploration discovery well encountered about 134 m (440 ft) of net gas pay in the Triassic Mungaroo Sands in 968 m (3,176 ft) of water.

The well fulfilled the second year work commitment in the exploration program.

“This discovery is a continuation of our exploration success and further positions our company as a key supplier for future liquefied natural gas demand in the Asia-Pacific region,” said Melody Meyer, president, Chevron Asia Pacific Exploration and Production Co.

Chevron Australia managing director Roy Krzywosinski said the discovery was an important addition to its portfolio and “highlights the industry-leading results of our exploration program in Australia.”

Chevron Australia is the operator of WA-392-P with a 50% interest while Shell Australia and Mobil Australia Resources each hold a 25% interest.

The discovery is located in the WA-392-P permit area about 95 km (59 miles) northwest of Barrow Island, off the coast of WA.

Chevron’s exploration success comes at an exciting time for the company which is putting the finishing touches on Gorgon in time for start-up later this year.

The Chevron-operated Gorgon project is a joint venture of the Australian subsidiaries of Chevron (47.3%), ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), Tokyo Gas (1%) and Chubu Electric Power (0.417%).

Gorgon includes the construction of a 15.6 mtpa LNG plant and a domestic gas plant with the capacity to supply 300 terajoules of gas per day to WA.

Lauren Barrett, associate editor for Hart Energy’s Oil and Gas Investor Australia, can be reached at lbarrett@hartenergy.com.

Comments