Wheatstone Project Welcomes New Partners on LNG Trains 1 and 2
Agreement Brings Apache and KUFPEC in as Gas Suppliers and Partners
SAN RAMON, Calif., October 22, 2009 - Chevron Corporation (NYSE: CVX), through its subsidiaries Chevron Australia Pty Ltd and Chevron (TAPL) Pty Ltd, announced that it signed an agreement with Apache Julimar Pty Ltd, a subsidiary of the Apache Corporation (NYSE: APA), and KUFPEC Australia (Julimar) Pty Ltd, a subsidiary of the Kuwait Foreign Petroleum Exploration Company k.s.c., to bring them into Chevron's Wheatstone liquefied natural gas (LNG) project as natural gas suppliers and 25 percent equity partners in the project facilities.
Under the agreement, Apache and KUFPEC will provide natural gas from their Julimar and Brunello fields, located in northwestern Australia, to supply 25 percent of the inlet gas to trains 1 and 2 of the Wheatstone project. Apache will assume a 16.25 percent equity interest and KUFPEC an 8.75 percent equity interest in the project. Chevron will remain the project operator.
"We are pleased to have Apache and KUFPEC as foundation partners in the project. Bringing in Apache and KUFPEC is intended to help us grow a Wheatstone LNG hub to process both Chevron and third-party gas. We anticipate that both Chevron equity gas and third-party gas will be available for further expansion trains now that the foundation project is in place," said Jim Blackwell, president, Chevron Asia Pacific.
John Gass, president, Chevron Global Gas, added "Creating the Wheatstone project as an LNG hub will continue to help unlock natural gas resources in the Carnarvon Basin and establish a new source of LNG from Australia for customers in the Asia-Pacific market."
In July 2009, Chevron announced the award of a major front-end engineering and design contract for the first phase of the project's development. Chevron expects to make a final investment decision on the Wheatstone project in 2011. The facility is to be located at Ashburton North on the mainland of Western Australia.
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, in which Chevron has a majority interest.
Chevron Corporation is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company's success is driven by the ingenuity and commitment of approximately 62,000 employees who operate across the energy spectrum. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.
Some of the items discussed in this press release are forward-looking statements about Chevron's activities in Australia. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates," "budgets" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in prices of, demand for and supply of crude oil and natural gas; actions of competitors; timely completion of the development of fields; the potential disruption or interruption of production and development activities due to war, accidents, political events, civil unrest, or severe weather; government-mandated sales, divestitures, recapitalizations and changes in fiscal terms or restrictions on scope of company operations; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Updated: October 2009