highlights of operations
In Australia, Chevron operates through our wholly owned subsidiary Chevron Australia Pty Ltd, the largest holder of natural gas resources in the country. These important assets help meet the growing need for energy in the Asia-Pacific region. We operate two major liquefied natural gas (LNG) projects in Australia, Gorgon and Wheatstone.
Chevron has safely produced oil at Barrow Island oil fields for more than 50 years. Along with other participants in the North West Shelf Venture, Chevron has exported LNG to Asian customers since 1989 and domestic gas to Australian customers since 1984.
exploration and production
Our subsidiary Chevron Australia Pty Ltd is developing energy resources off the northwest coast of Australia. Our strategy is to grow and commercialize our resources to create an effective natural gas business in Australia and the Asia-Pacific region.
Net daily production in 2016 averaged 21,000 barrels of liquids and 615 million cubic feet of natural gas.
Greater Gorgon Area development
Chevron is the operator of the Gorgon Project, which combines the development of the Gorgon Field and the nearby Jansz-Io Field.
Chevron is the operator of the Wheatstone Project, which includes a two-train LNG facility capable of producing a combined 8.9 million metric tons of LNG per year and a 190 million-cubic-feet-per-day domestic gas plant, both at Ashburton North.
North West Shelf Venture
Chevron has a 16.7 percent nonoperated working interest in the North West Shelf (NWS) Venture in Western Australia. The joint venture operates offshore producing fields and extensive onshore facilities that include five LNG trains and a domestic gas plant. Production comes from the Angel, Goodwyn, North Rankin and Perseus natural gas fields and the Cossack, Hermes and Wanaea crude oil fields.
Net daily production during 2016 averaged 14,000 barrels of crude oil and condensate, 450 million cubic feet of natural gas, and 3,000 barrels of liquefied petroleum gas. The NWS Venture is developing the remaining fields in the permit area, including subsea tiebacks to the existing offshore infrastructure. In 2015, the Greater Western Flank-1 Development Project achieved first production, and construction began on the Eastern Flank Persephone Project, which is expected to begin production in 2018. A final investment decision was reached on the Greater Western Flank-2 Development Project in 2015, with first production expected in 2019.
Chevron operates and has a 57.1 percent working interest in crude oil production operations at Barrow Island. In 2016, net daily production averaged 3,000 barrels of crude oil.
During 2016, we evaluated the future exploration potential in the Carnarvon Basin. In the first quarter of 2017, Chevron was awarded a 100 percent interest in exploration permit WA-526-P, a 39,537-net-acre (160-sq-km) area in the Northern Carnarvon Basin near the Gorgon Project.
Great Australian Bight
Chevron owns and operates offshore Blocks EPP44 and EPP45, which cover 8.0 million net acres (32,375 sq km) in the Bight Basin, off Australia’s southern coast. In 2016, we continued the processing and interpretation of the 3-D seismic data acquired in 2015.
Chevron also has nonoperated working interests ranging from 24.8 percent to 50 percent in three blocks in the Browse Basin.
supplying natural gas
Chevron markets natural gas produced from its Gorgon and Wheatstone projects to LNG customers in the Asia-Pacific region and to industrial and commercial gas customers in Western Australia.
Gorgon and Wheatstone
In 2015, Chevron signed a nonbinding Heads of Agreement (HOA) for delivery of up to 1 million metric tons per annum (MTPA) of LNG over 10 years starting in 2020. In early 2016, the company announced the signing of a nonbinding HOA for the delivery of up to 0.5 million MTPA of LNG over 10 years starting in 2018 or 2019. Most of the company’s LNG production from Gorgon and Wheatstone is committed under binding long-term agreements with major utilities in Asia, with the remainder sold on the Asian spot LNG market.
In the NWS Venture, approximately 70 percent of Chevron’s equity LNG is committed under binding, long-term sales agreements with major utilities in Asia. Chevron also sells natural gas to the domestic market in Western Australia.
Chevron, through our subsidiary Chevron Australia Pty Ltd, is the largest holder of natural gas resources in Australia and the operator of two major LNG projects, Gorgon and Wheatstone.
The Chevron-operated Gorgon Project is one of the world’s largest natural gas projects and the largest single-resource development in Australia. Based on Barrow Island, the Gorgon Project includes an LNG facility with three processing units designed to produce 15.6 million metric tons of LNG per year. It also includes a domestic natural gas plant and a carbon dioxide injection project. The first LNG cargo was shipped in March 2016, and supply of gas to the Western Australian domestic market commenced in December 2016.
For the latest news and full details of the project, explore the Gorgon story.
evolution of the gorgon project
The Gorgon Project includes one of the world’s largest subsea gathering systems and features state-of-the-art infrastructure offshore Western Australia.
Construction on the Wheatstone Project began in late 2011. The Chevron-led project includes an 8.9 million-metric-ton-per-year LNG facility with two processing units and a separate domestic gas plant.
For the latest news and full details of the project, explore the Wheatstone story.
wheatstone project update – january 2017
Follow the progress of the Wheatstone Project in Western Australia.
in the community
building strong partnerships
At Chevron, we are committed to building collaborative community partnerships.
Our social investment in Australia targets local communities. This includes the West Pilbara region in Western Australia, where the Gorgon and Wheatstone projects are located, and the Perth metropolitan area, where Chevron Australia Pty Ltd is headquartered. We focus on benefiting communities in areas such as health, education and the environment.
Chevron Australia’s portfolio of health partnerships aims to promote healthier lifestyles, train local health workers, and support greater access to key health services in regional and remote communities.
We partner with Telethon Speech & Hearing to offer ear health and audiology services in the Pilbara region. The program deploys mobile clinics to serve remote communities and is developing a best practice model for ear health care that can be used by teachers, parents and health practitioners in the region.
Chevron Australia’s partnership with the National Heart Foundation supports access to heart health care services for Aboriginal people in the Pilbara, including the development of a culturally appropriate Heart Health Initiative in Roebourne, Karratha and Onslow. The program is the first of its kind in the region.
Chevron Australia invests in community programs that improve school attendance with a focus on basic educational skills while promoting enhanced curriculum in science, technology, engineering and math (STEM). We also partner with universities and training providers to equip students with the skills and experience needed to pursue higher-level qualifications or gain employment in the energy sector. Our support includes:
- A partnership with Scitech that facilitates engagement with STEM programs so more local children will pursue STEM careers.
- A partnership with a regional community development organization to help Onslow youth stay in school while leading healthier lifestyles.
- The Powering Careers in Energy program, developed with the Western Australian School Curriculum and Standards Authority to increase energy literacy and inspire students to pursue a career in oil and gas.
- A partnership with The Smith Family, a national children’s charity, to help children from low-income families complete their education.
- The Women in Future Leadership program, which is designed to equip women with the basic skills to gain employment in the energy industry.
- Ongoing partnerships with the University of Western Australia and Curtin University.
- A range of scholarships and training programs to create employment opportunities for Aboriginal people.
Protecting the environment is one of Chevron’s key values.
Chevron has formed partnerships with organizations that have the skills and technical expertise to deliver educational programs and initiatives that encourage environmental stewardship and protect local biodiversity.
Through our partnership with Conservation Volunteers Australia, Chevron supports the restoration of key locations along the Swan and Canning rivers.
We also helped build and continue to support the Discovery Centre at the Kanyana Wildlife Rehabilitation Centre, which educates and trains the public in native wildlife conservation and rehabilitation.
sense of community
Chevron works with organizations that celebrate and increase awareness of the local communities’ diversity and heritage.
Chevron is a principal community partner with Yirra Yaakin, Australia’s largest Aboriginal theater group. We also partner with Western Australia’s flagship theater company, the Black Swan State Theatre Company.
Working Together for Onslow is a two-year partnership between the Chevron-operated Wheatstone Project and the Shire of Ashburton aimed at building an engaged and connected community in Onslow.
Our local Community Spirit Fund gives small grants to programs in local communities. We have contributed more than $1 million since 2006.
record of achievement
Chevron’s history in Australia goes back decades.
At the end of World War I, one of our legacy companies, The Texas Co. Australasia Ltd., was incorporated in New South Wales to handle the growing demand for petroleum products. Since 1941, the company’s marketing and refining activities in Australia have been conducted under the Caltex® brand. Our first refinery came on line in 1956. Chevron announced the sale of its interest in Caltex Australia Limited in March 2015. Although Chevron no longer holds equity, Caltex Australia continues to market fuels and lubricants under Chevron’s Caltex® brand through a trademark license agreement.
Our exploration and production activities in Australia began in 1951 when, under the Caltex banner, Chevron and Texaco began searching for crude oil in Western Australia. In 1952, Caltex and Ampol, an Australian petroleum company, formed West Australian Petroleum Pty. Ltd. (WAPET) to operate on their behalf. This venture made the nation’s first discovery, at Rough Range in Western Australia in 1953.
In 2014, Chevron celebrated 50 years since the Barrow Island Field discovery. It was through WAPET that we discovered the field in 1964. It was also through WAPET that we discovered the Gorgon gas field in 1980, the Saladin oil field in 1985 and the fields near Thevenard Island in 1989.
Chevron, along with other participants in the NWS Venture, began supplying domestic natural gas to customers in Western Australia in 1985. In 1989, the joint venture began exporting LNG to Asia, starting with Japan.
Discoveries continued with more gas fields: Chrysaor in 1994–1995, Dionysus in 1996 and, later, west of the central Gorgon area, the Jansz-Io in 2000. There has been a long string of successful exploration wells in Australia – more than 25 discoveries since mid-2009.
WAPET, with Chevron as technical advisor, continued as operator of the majority of the company’s assets in Australia until 2000, when Chevron Australia Pty Ltd replaced WAPET. Chevron and Texaco merged in 2001.
After extensive studies to identify the best site for the Gorgon Project, in 2003 the government of Western Australia provided in-principle approval for the Gorgon Project’s onshore gas plant to be based on Barrow Island.
In 2004, the Wheatstone natural gas field was discovered, and Chevron secured a 50 percent interest across most of the Greater Gorgon Area.
Chevron made two natural gas finds in 2006. The first was at our Chandon 1 exploration well within the western reaches of the Greater Gorgon Area. Later in the year, the Clio 1 exploration well was drilled successfully.
In 2007, Chevron Energy Technology Co. opened a global technology center in Perth to provide research, development and technical services for Chevron’s worldwide operations.
In 2008, we announced our intention to develop the Wheatstone gas field as an onshore LNG and domestic gas project and identified Ashburton North, near Onslow in the West Pilbara region of Western Australia, as the preferred site.
Along with our joint-venture participants, we announced a final investment decision to proceed to construction on the Gorgon and Wheatstone projects in 2009 and 2011, respectively.
health, environment and safety
Chevron, through previous participation in WAPET and as current operator, has achieved an outstanding environmental record on Barrow Island. The island, a Class A nature reserve, is free of introduced plants and animals thanks to Chevron’s successful quarantine efforts. Our environmental and quarantine management system has earned us national and international awards.
Chevron is working to reduce greenhouse gas emissions from our Australian operations by incorporating emission reduction technologies into the design of our major capital projects. At the Gorgon Project, we employ the latest technologies for subsea production, natural gas processing, waste heat recovery and the underground injection of reservoir carbon dioxide. Chevron has made a significant investment in the Gorgon Carbon Dioxide Injection Project, which aims to reduce greenhouse gas emissions from the project by 3.6 million to 4 million metric tons per year.
awards and recognition
In 2014, the Australian Petroleum Production and Exploration Association (APPEA) presented Chevron with the inaugural APPEA Environmental Excellence Award, which acknowledges an organization’s approach to environmental practice. Also in 2014, Engineers Australia recognized the Gorgon Project for engineering innovation at Gorgon’s Jansz-Io subsea pipeline and the pipeline’s crossing of a scarp, an exceptionally steep subsea ledge.
In 2015, Chevron won the Golden Gecko Award for Environmental Excellence for the Wheatstone Project’s micro tunnel at Ashburton North. Tunneling under the coastal environment was an innovation that reduced the impact to the onshore area. In March 2015, Australia’s Commonwealth Department of Agriculture recognized Chevron as a winner in the Industry category of the Biosecurity Awards for our quarantine management system on Barrow Island.
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This Website contains forward-looking statements relating to Chevron’s operations that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “budgets,” “outlook,” “trends,” “guidance,” “focus,” “on schedule,” “on track,” “is slated,” “goals,” “objectives,” “strategies,” “opportunities” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward- looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this report. 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.
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