Chevron Australia and its joint venture (JV) partners have taken the final investment decision (FID) for the Gorgon Stage 3 development, located off the north-west coast of Western Australia (WA).
The Australian unit of Chevron holds a 47.33% stake, while the JV partners include ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), MidOcean (1%) and JERA (0.417%).
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The Gorgon Stage 3 development is expected to entail A$3bn of investment.
It will connect the Geryon and Eurytion offshore natural gas fields to existing subsea gas-gathering infrastructure and processing facilities on Barrow Island.
This project development will help maintain production at the Gorgon facility, supporting the long-term supply of domestic gas to WA households and industry.
It also targets the export of liquefied natural gas (LNG) to customers in Asia.
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By GlobalDataThe project is part of the original development plan for Gorgon and marks the first of several planned subsea tiebacks in the region.
Chevron Australia president Balaji Krishnamurthy said: “Gorgon is a world-class energy asset which plays a crucial role in supporting the economic development and energy security of millions of people in Australia and across the Asia-Pacific region.
“With the development of the Geryon and Eurytion fields – to join the existing Gorgon and Jansz-Io fields in providing gas supply for the processing facilities – we can continue providing the reliable energy the world needs, maintaining thousands of highly skilled jobs in Australia, supporting regional WA communities and contributing to government revenue.
“Gorgon Stage 3 is a cost-competitive development which will optimise existing infrastructure and complement the well-progressed Jansz-Io Compression Project and previously completed Gorgon Stage 2 infill development.”
The development will include the installation of three subsea manifolds and 35km of production flowline, along with additional supporting infrastructure.
Drilling operations will cover six wells across the Geryon and Eurytion fields, located around 100km north-west of Barrow Island in water depths of 1,300m.
Gorgon has the capacity to produce up to 300 terajoules of gas per day for the WA market and 15.6 million tonnes per annum of LNG.
Last month, Chevron forecasted growth of more than 10% in its annual adjusted free cash flow and annual earnings per share through 2030, assuming Brent crude prices of $70 per barrel.
