Asia Pulse: CHEVRON AUSTRALIA SELLS REMAINING SHARE OF GORGON GAS: “Shell has also sold its share of the gas, signing a $US10 billion ($A13.40 billion) deal to market its gas through its Baja California terminal, currently under construction.”: Friday December 09, 2005
PERTH, Dec 9 Asia Pulse - Global oil company Chevron Australia has now completely sold its share of gas from the giant Gorgon gas joint venture after signing its third multi-billion deal in as many months.
The latest deal is with Japan's Osaka Gas and is worth A$10 billion (US$7.49 billion), taking the total value of Chevron's three supply deals to $28 billion
Chevron will supply 1.5 million tonnes a year to Osaka Gas over the next 25 years, starting in 2011.
With the Osaka Gas deal, Chevron has sold 4.2 million tonnes of its five million tonne a year share from the Western Australian offshore project, and will take the remainder itself.
In November it signed off on a $10 billion deal with Japan's Chubu Electric Co, which followed a $8 billion deal in October with Tokyo Gas.
Chevron Australia's president of marketing for Gorgon, Neil Theobald, said the latest deal rounded off the first phase of its marketing activities.
Japan is the largest gas market in the world and Mr Theobald said it had been a good time to negotiate sales agreements.
"The market has certainly strengthened over the last year and we're finding buyers more willing to step forward and make these sorts of commitments," he saidP.
"Things are certainly getting more advantageous for sellers."
The project is a joint venture between ChevronTexaco with a 50 per cent stake, Royal Dutch/Shell Group holding 25 per cent and ExxonMobil Corp owning 25 per cent.
Shell has also sold its share of the gas, signing a $US10 billion ($A13.40 billion) deal to market its gas through its Baja California terminal, currently under construction.
The partners will make a final investment decision on whether or not to develop the project in the September quarter of next year.
The field has reserves of 12.9 trillion cubic feet of gas and its development is forecast to generate more than $17 billion in government royalties and taxes over the lifetime of the project.
Deputy prime minister and minister for Trade, Mark Vaile today said the most recent deal demonstrated the strength of the Australian LNG industry, which had a bright future.
Click here to return to ShellNews.net HOME PAGE