TEPCO will acquire 15 per cent of Chevron’s interest in the offshore Wheatstone field licences and an 11.25 per cent interest in the associated natural gas processing facilities to be developed onshore near Onslow, 1,400 kilometres north of Perth.
Neither company has disclosed the value of the deal.
Western Australia Premier Colin Barnett has welcomed the deal saying “Western Australia will benefit both from significant new export earnings and from an additional 200 terrajoules of domestic natural gas, equal to about 20 per cent of the state’s current supply.”
In October, Chevron signed an agreement with Apache Energy and Kuwait Foreign Petroleum Exploration Company (KUFPEC) to provide gas from their Jumilar and Brunello fields, located on the North West Shelf, for trains 1 and 2 of the Wheatstone project. Apache subsidiary Apache Julimar, will acquire a 16.25 per cent interest in the project, and KUFPEC subsidiary KUFPEC Australia, will assume an 8.75 per cent interest in the project.
Article continues below…The initial phase of the Wheatstone project will have the capacity to process 8.6 MMt/a however Chevron will expand the project to produce 10 MMt/a of LNG through two 5 MMt/a trains, with the possibility of an additional three trains that would extend the project’s capacity to 25 MMt/a of LNG.
“The front-end engineering and design process is now well underway with the upstream and downstream engineers working on an integrated basis to ensure we have a well co-ordinated development leading up to a final investment decision in 2011,” said Chevron Australia Managing Director Roy Krzywosinski.
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