ExxonMobil says Gorgon decision could be delayed until 2007

A final investment decision on the Gorgon LNG joint venture in Australia could be delayed until next year, ExxonMobil Australia Chairman Mark Nolan told reporters at an energy conference in Australia.

May 9, 2006

By OGJ editors
HOUSTON, May 9 -- A final investment decision on the Gorgon LNG joint venture in Australia could be delayed until next year, ExxonMobil Australia Chairman Mark Nolan told reporters at an energy conference in Australia.

"There needs to be certainty about the cost before a financial investment decision can be made," Nolan told a news conference May 8 during the Australian Petroleum Production & Exploration Association at Gold Coast.

Gorgon is in the Carnavon basin off Western Australia. Nolan said he does not anticipate a delay in the start of LNG deliveries, slated for 2010. Chevron Corp. operates the JV with a 50% interest. ExxonMobil has 25% interest, and Royal Dutch Shell PLC has 25% interest.

Nolan refused to comment on remarks from analysts that estimated construction costs have escalated for the proposed plant that would be built on Barrow Island.