Chevron acquires Carnarvon blocks

CHEVRON Corporation has acquired three new Carnarvon blocks which it will jointly develop with Woodside Petroleum, following up its collaboration clarion call last year to keep the North West Shelf full and competitive.
Chevron acquires Carnarvon blocks Chevron acquires Carnarvon blocks Chevron acquires Carnarvon blocks Chevron acquires Carnarvon blocks Chevron acquires Carnarvon blocks

Helen Clark

Editor

Chevron has acquired Blocks WA-528-P, WA-529-P and WA-530-P as operator, which cover 23,170sq.km and are close to its offshore Gorgon and Wheatstone projects. 
 
It will jointly explore them with Woodside at a time when collaboration is the watchword of WA's LNG industry. 
 
"Chevron Australia has discovered around 50 trillion cubic feet of gas resources, and through collaboration we hope to commercialise this gas through the timely and efficient use of existing equity or third-party infrastructure," Chevron Australia managing director Nigel Hearne said.
 
"Partnership is going to be crucial for ongoing investment in Western Australia's resource sector and to maximise the value of the available resources and infrastructure for the benefits of local jobs, companies and energy security," Hearne echoed today. 
 
Woodside CEO Peter Coleman told Energy News in a statement this morning that the acreage adds significant inventory to his company's Carnarvon Basin portfolio and provides further optionality for future resource development through existing infrastructure.
 
"As the largest and most experienced infrastructure owner in the region, we are progressing plans to commercialise existing resources through low cost brownfield developments," Coleman said.
 
Last year Chevron Australia general manager, asset development Gerry Flaherty told Energy News that the 45 million tonnes per year of LNG WA will be producing once Gorgon, Wheatstone and Prelude are online won't last long. 
 
It will begin to decline by 2022-23 not long after analysts concur the current glut will subside. 
 
That means more gas will be important, and Chevron is also looking to develop "hubs" to collaborate to develop future gas. 
 
"We need to have an interconnected basin. We need to have hubs, which will help us maintain our competitive advantage," Flaherty said at the time. 
 
"If we can unlock this collaboration prize, it can unlock the benefits to our region for many decades - and we can compete on exploration, shipping and development costs."