Chevron Secures Gorgon Domestic Gas Sales Contracts
PERTH, Western Australia, 30 November 2011 – Chevron Australia has welcomed the signing of gas sales agreements that will help bolster Western Australia’s future energy security.
Under the agreements, gas from the Chevron operated Gorgon Project will be purchased through long term contracts by Western Australia’s largest energy retailer, Synergy and the State’s leading energy generator, Verve Energy.
Verve and Synergy have both entered into contracts for a combined 125 terajoules per day for 20 years term starting in 2015.
Roy Krzywosinski, managing director Chevron Australia said, “We are pleased to have finalised two significant long-term domestic gas sales contracts for the Gorgon Project and we welcome Synergy and Verve as valued customers.”
“Domestic gas is an important energy source for Western Australia and these contracts mean more gas and competition for the local market.”
Krzywosinski added, “It demonstrates the market is working. We have been actively marketing domestic gas from Gorgon and we will continue to do so.”
The Gorgon Project is due to deliver domestic gas to the market in 2015.
Chevron is the operator of the Gorgon Project and holds a 47.3 percent interest. Joint venture participants include ExxonMobil (25 percent interest), Shell (25 percent interest), Osaka Gas (1.25 percent), Tokyo Gas (1 percent), and Chubu Electric (0.417 percent).
Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.
Some of the items discussed in this press release are forward-looking statements about Chevron's activities in Australia. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "schedules," "estimates," "budgets" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in prices of, demand for and supply of crude oil and natural gas; actions of competitors; the inability or failure of the company's joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of production and development activities due to war, accidents, political events, civil unrest, or severe weather; government-mandated sales, divestitures, recapitalizations and changes in fiscal terms or restrictions on scope of company operations; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.