Chevron assures investors Gorgon on track

Chevron has told investors Gorgon is on track and will start production in the middle of 2015.

"We want to reiterate the project is on track and we are on target for a mid-2015 start up,’’ CFO Pat Yarrington told investors.

Ms Yarrington said 20 of the 21 “critical process modules” for the first of two trains (production facilities) were in place, along with common facilities at Gorgon’s Barrow Island base.
“The remaining train will arrive shortly and it really becomes a process of hooking up and commissioning,’’ Ms Yarrington said.

Petronet expects LNG from Gorgon in 2015-16

Petronet LNG Ltd (PLL) today informed that the supplies of liquefied natural gas (LNG) from the Australian Gorgon LNG Project will begin from 2015-16.

The company had signed a 20-year long term sales and purchase agreement (SPA) with an Australian subsidiary of Exxon Mobil Corporation in August 2009 to purchase approximately 1.5 million tonnes per annum (MTPA) of LNG from the Gorgon LNG Project.

“As per the update given by Exxon Mobil team the project is progressing on schedule and they are about 65% through. In the November-December this year, they may begin operations. So we can expect that by 2015-16, we will be able to get our first supplies from there to our Kochi terminal,” said A K Balyan, MD & CEO, Petronet LNG Ltd.

“We have already ordered for construction of a fourth ship that would carry the LNG from Australia to India. It is the same consortium which is doing our transportation from Qatar and Shipping Corporation of India would be operating it,” he said.

Cobham Aviation secures Gorgon gas project contract extension

Cobham Aviation Services has secured a contract extension with Chevron to service the Gorgon gas project on Barrow Island. It will see the company use a fourth aircraft to service the project.

Ryan Both, Cobham’s general manager regional services said the contract extension reflected Cobham’s ability to deliver customised services and unique operational requirements to the resources industry.

“We have a long-term relationship with Chevron Australia with more than 50 Cobham aircrew, including pilots and cabin crew, now supporting flight services for the Gorgon Project,” Both said.

Chevron doubtful about fourth train for Gorgon gas project

Chevron's Chief Financial Officer has casts doubts on the fourth train expansion of the Gorgon gas project. Patricia E. Yarrington said that the cost structure is different today than it was in 2009 when the first three trains were taken to final investment decision. She said the cost structure has “elevated” and that has put at risk some of Australia’s global competitiveness.

“From a Chevron standpoint, we are going to look at Train 4 and assess it under those new conditions and look at it relative to other opportunities in our portfolio. Obviously Gorgon Train 4 has certain brownfield advantages, but we need to take those advantages, lay in the new macro-conditions that we see in Australia, and take a look at the whole portfolio activity,” she said.

For existing construction work, Gorgon is 70% complete with 14 of the 21 LNG Train 1 process modules installed, three more in transit, and the remainder scheduled to follow rapidly.

Monadelphous wins $141 million Gorgon gas project maintenance contract

Monadelphous has won a one-year extension on the facilities management services contract associated with the Gorgon gas project. The contract extension, valued at approximately $141 million (AUD 150 million), is to continue the operation and maintenance of construction facilities and utilities on Barrow Island. This is the second 1-year extension to the original 3-year contract, which was awarded in November 2009. More than 200 people will continue to be employed under the contract.

$US15 billion cost blowout at Gorgon gas project

The strong Australian dollar and extra logistics have caused a massive blowout in the cost of the Gorgon gas project.

Crackdown on foreign workers at Gorgon gas project

The Federal Government has moved to close a loophole allowing cheaper foreign workers on Chevron's $43 billion Gorgon project, cheering the union movement but sparking fresh concerns about rising costs on Australia's major resource projects.

Immigration Minister Chris Bowen said yesterday it would seek to change the Migration Act's application to offshore resource industry workers in light of its defeat in the so-called Allseas case.
Swiss-based offshore pipe-laying contractor Allseas became an IR lightning rod last year when it successfully used Tampa-era migration laws designed to stop boat people to see off a Federal Court challenge by the Gillard Government.

Federal Court Justice Neil McKerracher said at the time he was satisfied the ships operated by Allseas were not "resources installations" as defined in the Migration Act, in a case that spun on whether pipes laid by Allseas touched the seabed, and thus whether crew should be employed under Australian awards.

Allseas has since won further work on Chevron's $29 billion Wheatstone venture, prompting unions to demand changes to laws. The Government decided against appealing against the case and Mr Bowen said he was trying to strike a balance.

Svitzer wins 20-year Gorgon contract

Chevron Australia, which has the majority share in the Gorgon joint venture, has awarded tug operator Svitzer a 20-year contract on the Gorgon Gas Project.

Svitzer will supply four 33m, 80-tonne bollard-pull Azimuthing Stern Drive (ASD) tugs for the project which will begin in 2014.

Ertech wins $50 million Gorgon contract

Ertech Holdings has won a $50 million general services contract for the Gorgon gas project. The construction company will provide equipment and workforce to help construct a gas processing plant on Barrow Island. Ertech has delivered more than $200 million of construction work on the Gorgon gas project since 2009. This work includes the design and construction of the desalination plant, earthworks around the construction camp, and construction of landing berths at the island.

Gorgon gas project to help Australia be global no. 2 LNG supplier by 2015

Australia is on course to be the second largest LNG supplier in the world by 2015. Projects such as the Gorgon gas project and Wheatstone gas project should help Australia close in on the number 2 position by the middle of the decade.

"So far in 2011, final investment decisions were reached for four Australian LNG projects," Tania Constable, head of the resources division of the Department of Resources, Energy & Tourism said.

It is believed that Australia could even overtake Qatar as the number 1 LNG supplier in the world by 2020.

Rosen Group wins Gorgon Gas Project contract

Rosen Group was recently awarded four major baseline pipeline inspection contracts for the Gorgon Gas Project on Barrow Island in Western Australia. The contracts are worth approximately $US9 million. Rosen has nearly 15 years of Western Australian experience.

Chevron looking to expand Gorgon gas project

Chevron is aiming to approve an expansion of the Gorgon gas project within 2 years. The news was released by Chevron's vice president of technology and services, Jim Blackwell, at a briefing for analysts in New York. More that $US25 billion worth of contracts have been awarded so far at the Gorgon gas project.

Gorgon gas project delayed

The Gorgon gas project is suffering from construction delays. The delays have already affected Australian contractor AJ Lucas who has warned its first half profits were likely to drop. AJ Lucas is contracted to provide shore crossings to link the upstream facilities for the Gorgon gas project to the onshore infrastructure on Barrow Island.

Clough wins $300m Gorgon contract

Clough Ltd has won a $300 million contract for work on the Gorgon gas project in Western Australia.

"The work involves the transportation and installation of approximately 90km of 50cm pipeline, both offshore and onshore, from Barrow Island to the Dampier Bunbury Natural Gas Pipeline," Clough said.

Clough said engineering and procurement would commence immediately. Site work is expected to start and finish in 2012.

Gorgon distributing $9 billion of work to Australian firms

The Gorgon gas project has delivered around $9 billion in work to Australian firms so far. Most of the work has been given to WA companies. There are currently around 85 boats and ships around Barrow Island involved with the construction of the Gorgon gas project.

Gorgon to be checked by KPMG

Chevron has appointed forensic accountants from KPMG to help avoid cost overruns on the Gorgon gas project. The accountants will look through invoices from contractors and sub-contractors to ensure that Chevron is not being overcharged. Chevron has awarded $24 billion worth of Gorgon contracts in the last year.

PM praises Gorgon carbon project

The prime minister of Australia, Julia Gillard, visited the Gorgon gas project site last Saturday to praise the environmental credentials of the operation. The Gorgon gas project features the world's biggest carbon capture and storage program. At its annual meeting last week, the Carbon Sequestration Leadership Forum recognised the Gorgon gas project for its leadership in carbon capture and storage.

Leighton wins Gorgon contract

A subsidiary of Leighton has won a massive contract to deliver civil and underground works on the Gorgon gas project. The $800m contract is in addition to the company's current Gorgon work which include a jetty and marine structures.

Mermaid Marine secures Gorgon contract

Mermaid Marine has secured a shipping contract for the Gorgon gas project. The 3-year contract is worth more than $80 million and includes the provision of a towing tug, barge and landing craft. The barge will be uses to transport fuel from the mainland to the Gorgon site.

Chevron board may visit Gorgon site

The board of Chevron is to visit Perth at the end of this month to mark the first anniversary of its decision to approve the Gorgon gas project in Western Australia. Considering the board is making the trip from Houston to Perth, it would be strange for them not to go that little bit further and visit the Gorgon site during their stay in Western Austalia. Chevron's board includes a former Daimler Chrysler co-chairman and the current chairman of Wells Fargo.