PERTH (miningweekly.com) – US energy major Chevron would exchange its holdings in the Browse development for fellow major Shell’s interest in the Clio and Acme fields, in the Carnarvon Basin.
Under the agreement, Chevron would exchange its 16.7% interest in the East Browse titles and its 20% interest in the West Browse titles for Shell’s 33.3% interest in the Clio and Acme fields. Shell would also make a $450-million cash payment to Chevron.
The Browse liquefied natural gas (LNG) development, near James Price Point in Kimberley, is a joint venture between Woodside Energy, Shell, BP, Chevron and BHP Billiton.
The project includes three gasfields estimated to contain a combined contingent resource of about 13.3-trillion cubic feet of dry gas and 360-million barrels of concentrate. First gas production has initially been slated for 2017.
Chevron’s vice chairperson George Kirkland said on Tuesday that acquiring the remaining interest in the Clio and Acme fields fitted strategically with the company’s long-term growth plans for its Wheatstone area resource base, and created expansion opportunities for the Wheatstone project.
Chevron’s Asia Pacific exploration president, Melody Meyer, added that consolidating the company’s Carnavron Basin position furthered its progress towards becoming a leading LNG and domestic gas producer in Australia and the Asia Pacific.
“Australia is a key focus area for Chevron, evidence by our investment and development of the Gorgon and Wheatstone projects, and strong exploration and appraisal programme,” she added.
The $29-billion Wheatstone project was expected to produce some 8.9-million tons of LNG a year, while the $37-billion Gorgon project would add a further 15.6-million tons of LNG a year.
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