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Chevron makes two discoveries off WA coast

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AAP

2012-12-28

Chevron has made two offshore natural gas discoveries in north Western Australia's Carnarvon Basin that could drive expansions of its two large gas projects in the same region.

The discoveries at Pinhoe-1 and Arnhem-1 are located further away from the coast than the oil and gas giant's Gorgon and Wheatstone liquefied natural gas projects (LNG) in the Exmouth Plateau area of the Carnarvon Basin.

The Pinhoe-1 exploration discovery well encountered about 60 metres (197 feet) of net gas pay.

The Arnhem-1 exploration discovery well confirmed about 45.5 metres (149 feet) of pay.

Chevron has now announced 19 gas discoveries in Australia since mid-2009, Chevron Asia Pacific Exploration and Production Company president Melody Meyer said.

"These discoveries in the Exmouth area are significant as they are located farther out from other discoveries in the greater Gorgon and Wheatstone development in the Carnarvon basin and indicates development potential in the broader region," she said in a statement on Friday.

Chevron Australia is the operator and has a 50 per cent interest in the two permit areas, with Shell the other stakeholder.

More than $160 billion gas already been committed to Australian LNG projects - representing more than half of resources investment - but has been marred by cost blow-outs including a recent $9 billion hike in Gorgon's development cost to $52 billion.