Chevron gassed up on latest discovery

PERTH - Chevron has found gas at the Chandon-1 exploration well off Western Australia, which will add to reserves in its nearby Gorgon gas field.

The company has agreed to sell stakes in the discovery to its Gorgon venture partners, Exxon Mobil and Shell, to align the interests in the field with the Gorgon venture.

Chevron and its partners plan to develop the Gorgon and Jansz gas fields, which contain about 1.13 trillion cubic metres of gas, in a liquefied natural gas project to export fuel to northern Asia and North America.

Chevron said in April it would double its budget for exploration in Australia this year, including drilling three wells seeking reserves to extend the life of the proposed A$11 billion ($13.4 billion) Gorgon project.

"This gas find underscores the value of focusing Chevron's exploration programme on high-impact opportunities," John Watson, president of Chevron International Exploration and Production, said.

Stephen Greenlee, Exxon Mobil's exploration vice-president for the Asia-Pacific, called the Chandon discovery "significant". "Our exploration off Western Australia reflects the substantial potential we see in the area," Greenlee said.

The companies gave no size estimate for the field.

- BLOOMBERG