Gorgon won�t meet delivery deadline: Chevron

GORGON operator Chevron has confirmed that the giant northwest Australian liquefied natural gas development will probably fail to meet its 2010 delivery deadline.
Gorgon won’t meet delivery deadline: Chevron Gorgon won’t meet delivery deadline: Chevron Gorgon won’t meet delivery deadline: Chevron Gorgon won’t meet delivery deadline: Chevron Gorgon won’t meet delivery deadline: Chevron

Less than two weeks ago, ExxonMobil Australia chairman Mark Nolan told reporters at the APPEA national conference that the final investment decision was unlikely to be finalised this year.

Nolan said construction cost blowouts, complications with the front-end engineering and design program, and delays in receiving environmental approvals were holding back the project. However, he also said at the time that these problems would not affect the delivery schedule.

A Gorgon spokesman said was too early to set a new delivery date but industry analysts say it is now unlikely that shipments will begin before 2012.

In other news, BP is moving to sell its stakes in Gorgon-area fields.

BP owns 12.5% of the Jansz field, one of the blocks from which Gorgon gas will be drawn. The company is not a member of the Gorgon joint venture. Gorgon partners Chevron, Exxon and Shell have pre-emptive rights to the stakes.

The Greater Gorgon, located off Australia’s northwest coast, contains an estimated gas resource in excess of 40 trillion cubic feet, and is made up of the Gorgon gas fields and Jansz gas field in deeper water further offshore. The region has certified gas reserves of 12.9 tcf.

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