Chevron strikes it rich with another gas find in Australia

US-based oil giant, Chevron, the largest holder of untapped natural gas resources in Australia said late last night that it has made a gas discovery off Western Australia that could help support its plans for the expansion of the $37-billion Gorgon liquefied natural gas project.(See: Chevron says partners Exxon, Shell approve Gorgon LNG Project) 

The energy giant, which is the operator and holds 50 per cent stake in the A$43 billion Gorgon LNG project off the West Australian coast, said that it has achieved drilling success in about 100 metres of the 4,500 metres drilled at its Achilles-1 exploration well in the off-shore Carnarvon Basin, about 160 kilometres north-west of Onslow.

"The success of our drilling programme will provide additional natural gas to underpin the Gorgon and Wheatstone projects," Chevron Australia managing director Roy Krzywosinski said in a statement.

In August 2009, Chevron announced natural gas discoveries of 375 feet (115 meters) of net gas pay at the Clio-2 well and 110 feet (34 meters) of net gas pay at the Kentish Knock-1 well, located offshore Western Australia.

''This discovery is located in a highly prospective area where Chevron is the leading leaseholder, and it adds to our recent exploration successes,'' said George Kirkland, Chevron's executive vice president, Global Upstream and Gas. ''The discovery will also build on the supply that underpins the projected 40-year life of the Gorgon project.''

The Achilles-1 well is located in the WA-374-P permit area in the Greater Gorgon area, where Chevron Australia is the operator of WA-374-P with 50 per cent interest, while Shell Development (Australia) and ExxonMobil Australia each hold 25 per cent.