Page 28 - OGA-Sept-2015
P. 28
GORGON/WHEATSTONE FEATURE
OIL & GAS AUSTRALIA
Chevron focused on operations at Gorgon
BY SARAH BYRNE
MORE than 90 per cent complete, the
Chevron Australia-operated Gorgon project
is preparing to move into the operations
phase, with commissioning underway and
first liquefied natural gas (LNG) exports
likely to occur in early 2016.
In its second quarter results Chevron The Chevron-operated Gorgon project is more than 90% complete. Image courtesy Chevron Australia.
said it is working to achieve first LNG cargo
from Gorgon by year end. To address these delays Chevron period.
expanded to an additional yard and Commenting on the weak results, Mr
However, given risks including equipment provided increased oversight in the yards.
malfunctions and possible labour and Watson said the second quarter results are a
weather disruptions, it is likely to be pushed “We’ve seen positive results from these reflection of a crude price decline of nearly
back to 2016, the company said. actions and are not anticipating any further 50% from a year ago.
delays in the module delivery schedule,” Mr
Speaking at a recent Australian Mines Watson said. “Our upstream businesses were
and Metals Association national conference, particularly hard hit, as lower prices reduced
Chevron Australia general manager “Additionally, we’ve increased bed revenues and triggered impairments and
of human resources Kaye Butler said capacity at the plant site and are updating other charges,” he said.
completing the last 20 per cent of the project our work plans to mitigate the impact to
was harder than completing the first 80%. schedule.” Speaking on Chevron’s second quarter
earnings call, Chevron executive vice
Commissioning is underway on the In its most recent project update, Chevron president of upstream, Jay Johnson gave
subsea gas gathering system at the Jansz- said 11 of the 24 Train 1 process modules a rough profile of the expectations of the
lo field and both electric and hydraulic required for first LNG had been delivered to Gorgon project, saying even in the lower
elements of the control system have been site at Wheatstone. price environment it has substantial cash
activated at Gorgon. generation.
All gas turbine generators have been
Chevron said the subsea valves are being installed on the foundations and subsea “So we are looking forward to getting that
tested and will pave the way for first gas to infrastructure is being installed, with all cash on stream,” Mr Johnson said.
the plant site. three production manifolds now in place.
The Gorgon project is developing the
The final LNG Train 2 module has been Mr Watson said the objective for Gorgon and Jansz-Io gas fields located
placed on its foundations, while delivery of Wheatstone remains first LNG by the end of between 130 and 220 kilometres off the
LNG Train 3 modules continue - with five of 2016, but the company will provide updates northwest coast of Western Australia.
the 13 currently in place on Barrow Island, on its progress over the next 18 months.
Chevron said in its most recent update. It is a joint venture between the
Globally, Chevron reported earnings of Australian subsidiaries of Chevron (47.3%),
Preparations to fill the Jansz-lo US$571 million for the second quarter of ExxonMobil (25%), Shell (25%), Osaka Gas
mono-ethylene glycol (MEG) pipeline 2015, substantially lower when compared (1.25%), Tokyo Gas (1%) and Chubu Electric
are underway, with two cargos of MEG with earnings of US$5.7 billion in the 2014 Power (0.417%).
delivered to Barrow Island and imported to second quarter.
the MEG storage tanks. The Wheatstone project includes an
Impairments of US$1.96 billion and other onshore facility at the Ashburton North
LNG and condensate loading arms charges of about US$670 million relating to Strategic Industrial Area, which is 12
were installed on the Gorgon project’s project suspensions and adverse tax effects kilometres west of Onslow in Western
2.1 kilometre jetty in July, the final major were included in the quarter results. Australia.
components to be installed prior to
commissioning. These were non-cash charges stemming Chevron’s Wheatstone project is a joint
from a downward revision in the company’s venture between Australian subsidiaries
Chevron said a multi-lift operation was longer-term crude oil price outlook. of Chevron (64.14 %), Kuwait Foreign
used to lift and position each of the arms Petroleum Exploration Company (13.4%),
into place. Chevron reported gains on asset sales Woodside Petroleum (13%), and Kyushu
totalling US$1.80 billion in the current Electric Power Company (1.46%), together
In total, the transportation and quarter, and sales and other operating with PE Wheatstone Pty Ltd, part owned by
installation process involved 30 lifts with the revenues were US$37 billion, compared to TEPCO (8%). l
heaviest weighing almost 100 tonnes. US$56 billion in the 2014 corresponding
Chevron chief executive John Watson
said project execution on the Gorgon and
Wheatstone projects was a priority.
At over 65% complete, according
to Chevron’s second quarter results,
Wheatstone is targeting first LNG by the
end of 2016.
Chevron said the focus of activity at
the Wheatstone project has shifted from
civil works to mechanical, electrical and
instrumentation systems.
Delays in the delivery of modules from a
fabrication yard has been putting pressure
on the schedule and is one of the biggest
challenges for the project, Mr Watson said.
26 ENERGY PUBLICATIONS CELEBRATING 34 YEARS OF PUBLISHING IN AUSTRALIA
OIL & GAS AUSTRALIA
Chevron focused on operations at Gorgon
BY SARAH BYRNE
MORE than 90 per cent complete, the
Chevron Australia-operated Gorgon project
is preparing to move into the operations
phase, with commissioning underway and
first liquefied natural gas (LNG) exports
likely to occur in early 2016.
In its second quarter results Chevron The Chevron-operated Gorgon project is more than 90% complete. Image courtesy Chevron Australia.
said it is working to achieve first LNG cargo
from Gorgon by year end. To address these delays Chevron period.
expanded to an additional yard and Commenting on the weak results, Mr
However, given risks including equipment provided increased oversight in the yards.
malfunctions and possible labour and Watson said the second quarter results are a
weather disruptions, it is likely to be pushed “We’ve seen positive results from these reflection of a crude price decline of nearly
back to 2016, the company said. actions and are not anticipating any further 50% from a year ago.
delays in the module delivery schedule,” Mr
Speaking at a recent Australian Mines Watson said. “Our upstream businesses were
and Metals Association national conference, particularly hard hit, as lower prices reduced
Chevron Australia general manager “Additionally, we’ve increased bed revenues and triggered impairments and
of human resources Kaye Butler said capacity at the plant site and are updating other charges,” he said.
completing the last 20 per cent of the project our work plans to mitigate the impact to
was harder than completing the first 80%. schedule.” Speaking on Chevron’s second quarter
earnings call, Chevron executive vice
Commissioning is underway on the In its most recent project update, Chevron president of upstream, Jay Johnson gave
subsea gas gathering system at the Jansz- said 11 of the 24 Train 1 process modules a rough profile of the expectations of the
lo field and both electric and hydraulic required for first LNG had been delivered to Gorgon project, saying even in the lower
elements of the control system have been site at Wheatstone. price environment it has substantial cash
activated at Gorgon. generation.
All gas turbine generators have been
Chevron said the subsea valves are being installed on the foundations and subsea “So we are looking forward to getting that
tested and will pave the way for first gas to infrastructure is being installed, with all cash on stream,” Mr Johnson said.
the plant site. three production manifolds now in place.
The Gorgon project is developing the
The final LNG Train 2 module has been Mr Watson said the objective for Gorgon and Jansz-Io gas fields located
placed on its foundations, while delivery of Wheatstone remains first LNG by the end of between 130 and 220 kilometres off the
LNG Train 3 modules continue - with five of 2016, but the company will provide updates northwest coast of Western Australia.
the 13 currently in place on Barrow Island, on its progress over the next 18 months.
Chevron said in its most recent update. It is a joint venture between the
Globally, Chevron reported earnings of Australian subsidiaries of Chevron (47.3%),
Preparations to fill the Jansz-lo US$571 million for the second quarter of ExxonMobil (25%), Shell (25%), Osaka Gas
mono-ethylene glycol (MEG) pipeline 2015, substantially lower when compared (1.25%), Tokyo Gas (1%) and Chubu Electric
are underway, with two cargos of MEG with earnings of US$5.7 billion in the 2014 Power (0.417%).
delivered to Barrow Island and imported to second quarter.
the MEG storage tanks. The Wheatstone project includes an
Impairments of US$1.96 billion and other onshore facility at the Ashburton North
LNG and condensate loading arms charges of about US$670 million relating to Strategic Industrial Area, which is 12
were installed on the Gorgon project’s project suspensions and adverse tax effects kilometres west of Onslow in Western
2.1 kilometre jetty in July, the final major were included in the quarter results. Australia.
components to be installed prior to
commissioning. These were non-cash charges stemming Chevron’s Wheatstone project is a joint
from a downward revision in the company’s venture between Australian subsidiaries
Chevron said a multi-lift operation was longer-term crude oil price outlook. of Chevron (64.14 %), Kuwait Foreign
used to lift and position each of the arms Petroleum Exploration Company (13.4%),
into place. Chevron reported gains on asset sales Woodside Petroleum (13%), and Kyushu
totalling US$1.80 billion in the current Electric Power Company (1.46%), together
In total, the transportation and quarter, and sales and other operating with PE Wheatstone Pty Ltd, part owned by
installation process involved 30 lifts with the revenues were US$37 billion, compared to TEPCO (8%). l
heaviest weighing almost 100 tonnes. US$56 billion in the 2014 corresponding
Chevron chief executive John Watson
said project execution on the Gorgon and
Wheatstone projects was a priority.
At over 65% complete, according
to Chevron’s second quarter results,
Wheatstone is targeting first LNG by the
end of 2016.
Chevron said the focus of activity at
the Wheatstone project has shifted from
civil works to mechanical, electrical and
instrumentation systems.
Delays in the delivery of modules from a
fabrication yard has been putting pressure
on the schedule and is one of the biggest
challenges for the project, Mr Watson said.
26 ENERGY PUBLICATIONS CELEBRATING 34 YEARS OF PUBLISHING IN AUSTRALIA
