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Chevron and TEPCO Sign Major Wheatstone LNG and Equity Deal
PERTH, Western Australia, 5 December 2009 – Chevron and Tokyo Electric Power Company (TEPCO) today signed a landmark Heads of Agreements (HOA) for the delivery of 4.1 million tonnes per annum (MTPA) of liquefied natural gas (LNG) for up to 20 years from the Wheatstone natural gas project in Australia.
Under the agreements, TEPCO also intends to acquire 15 percent of Chevron’s equity share in the licenses over the Wheatstone field and an 11.25 percent interest in the Wheatstone natural gas processing facilities to be developed onshore near Onslow in Western Australia.
President of Chevron Asia Pacific Exploration and Production, Jim Blackwell welcomed TEPCO as a foundation customer and investor in the Wheatstone Project, saying the support of an experienced LNG customer was a major boost for the project. "This landmark agreement provides a vital LNG market for the Wheatstone Project," Blackwell said.
Managing Director of Chevron Australia, Roy Krzywosinski, said "We have started front end engineering and design work on the Wheatstone Project and are on track to make a final investment decision in 2011.
"The Ashburton North site is ideally situated to process our significant equity gas resources and new third party resources that are located in the West Carnarvon Basin. We look forward to welcoming new partners to the Wheatstone Project in the near future," said Krzywosinski.
The initial phase of the Wheatstone Project will have the capacity to process 8.6 MTPA of LNG and a domestic gas plant at Ashburton North, south of Onslow in Western Australia.
In October, Chevron announced it had signed a binding agreement with Apache Julimar Pty Ltd, a subsidiary of the Apache Corporation, which will assume a 16.25 percent equity interest in the Wheatstone Project, and KUFPEC Australia (Julimar) Pty Ltd, a subsidiary of the Kuwait Foreign Petroleum Exploration Company k.s.c., which will assume an 8.75 percent interest in the project.
Chevron is one of the world's leading integrated energy companies and through its Australian subsidiaries, has been present in Australia for more than 50 years. With the ingenuity and commitment of more than 1,500 people, Chevron Australia leads the development of the Gorgon and Wheatstone natural gas projects; manages its equal one-sixth interest in the North West Shelf Venture; and operates Australia’s largest onshore oilfield on Barrow Island and the Thevenard Island oilfields. The company is also a participant in the Browse liquefied natural gas development and is a significant investor in exploration offshore northwest Australia. In addition, Chevron’s Perth-based Global Technology Centre provides technology support and solutions to the company’s operations in Australia and around the world. www.chevronaustralia.com
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