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.

Theiss wins $212m Gorgon gas project contract

Thiess has won a new contract worth $212 million for work on Chevron's $52 billion Gorgon project in Western Australia.
Thiess will deliver ‘miscellaneous civil works’ at the liquefied natural gas (LNG) project over the next two years under the new contract, it said today.
The company already holds contracts for other work at Gorgon and Chevron's Wheatstone LNG project, also in WA.

$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.

DeepOcean wins Gorgon gas project trenching contract

DeepOcean UK has been awarded a trenching contract by Subsea 7 to carry out work on the Chevron-operated Gorgon gas project in Australia.

DeepOcean will be responsible for the project management, engineering and associated trenching works of approximately 70km of main umbilical for the Gorgon and Jansz-Io field developments.

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.

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.

Union says illegal workers on Gorgon gas project

The Maritime Union claims a number of illegal immigrants are working on the Gorgon gas project.
The union claims that a sub-contractor of Chevron is employing crane operators and deck hands on tourist visas and paying them below award wages.

"It's just a cheap grab for labour, cheap labour that it is on these multi-multi-billion dollar projects, it's a joke" said MUA Deputy National Secretary Mick Dolman.

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 contract won by ICON Engineering

A contract to build a Compensated Tension Lift Frame (CTLF) for use on the Gorgon gas project has been won by ICON Engineering.
The unit will be assembled in Perth and many of the componenents will be sourced from Australian suppliers.
The contract is worth $5.5 million.

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.