Chevron makes new natural gas find

Oil giant Chevron has made a new discovery off Western Australia that could support an expansion of its $39 billion Gorgon liquefied natural gas (LNG) project. The San Ramon, California-based company has found gas at its Achilles-1 well, which was drilled to around 4,500 meters. The well lies in the offshore Carnarvon Basin, about 160 kilometers north-west of Onslow in the Gorgon area. The Gorgon project, due to commence production in 2014, is expected to be a key source of energy for the developing economies of Asia.  Located off Barrow Island, Gorgon is being operated by Chevron and its partners Royal Dutch Shell and Texas-based ExxonMobil. It is the largest of a dozen planned LNG projects in Australia, with the three companies planning to spend around $39 billion on its initial construction phase. Gorgon is already supported by supply contracts with China, Japan, South Korea and India, worth a combined $133 billion. Chevron owns 50 percent of the Gorgon project, with ExxonMobil and Shell each holding 25 percent. Chevron is also leading development of the nearby Wheatstone gas field, which is expected to start production in 2016. George Kirkland, ChevronÔÇÖs executive vice president, Global Upstream and Gas, said the discovery would ÔÇ£build on the supply that underpins the projected 40-year life of the Gorgon project.ÔÇØ  Jim Blackwell, president of Chevron Asia Pacific Exploration and Production, said that offshore north-west Australia remains one of the companyÔÇÖs focus areas for global exploration.  ÔÇ£As we expand our Australia natural gas business, additional discoveries in the most prospective areas in the region will be expected to be tied into facilities already under construction or being planned,ÔÇØ Blackwell said.  Chevron employs around 62,000 staff across its worldwide operations. *┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á *