Chevron says Wheatstone, Iago fields can support LNG

Chevron Australia's wholly owned Wheatstone LNG project off Western Australia has moved a step closer to commercialization.

Feb. 25, 2009

2 min read

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Feb. 25 -- Chevron Australia's wholly owned Wheatstone LNG project off Western Australia has moved a step closer to commercialization following the company's announcement that the Wheatstone and nearby Iago fields hold sufficient gas resources to support a two-train export LNG development onshore and a domestic gas component.

This assessment comes after a successful seven-well exploration and appraisal program. Chevron declined to put a figure on the reserve estimates.

Wheatstone field is on offshore permit WA-253-P and retention lease WA-17-R and lies about 200 km north of the Pilbara town of Onslow,Western Australian. The field was found in 2004.

Iago field spans two retention permits WA-17-R, owned 100% by Chevron, and WA-16-R, in which Shell Development Australia has a one third share. This field was discovered in 2000.

Late in 2008, Chevron announced plans to locate the Wheatstone LNG plant at Ashburton North near Onslow. The company expects to begin front-end engineering and design for the project during the second half of this year.

In the meantime, Chevron says that, in support of the Wheatstone and Gorgon projects, it will use two drilling rigs to drill multiple exploration wells in its operated acreage in 2009. One of the rigs is the large Ensco 7500 ultradeepwater semisubmersible, which has been contracted until the end of August 2010 at a day rate of $550,000. The contract includes options to extend by 1-2 years.