Chevron Australia (Chevron) and the Gorgon Joint Venture Participants have taken a Final Investment Decision (FID) on the Gorgon Stage 3 development off the northwest coast of Western Australia (WA).

The A$3 billion backfill development will connect the offshore Geryon and Eurytion natural gas fields in the Greater Gorgon Area to Gorgon’s existing subsea gas gathering infrastructure and processing facilities on Barrow Island.

Chevron Australia president Balaji Krishnamurthy said the development would maintain production at Gorgon, enabling the long-term supply of domestic gas for WA households and industry, and liquefied natural gas (LNG) for international customers in Asia.

“Gorgon is a world-class energy asset which plays a crucial role in supporting the economic development and energy security of millions of people in Australia and across the Asia Pacific region,” Krishnamurthy said.

“With the development of the Geryon and Eurytion fields – to join the existing Gorgon and Jansz-Io fields in providing gas supply for the processing facilities – we can continue providing the reliable energy the world needs, maintaining thousands of highly skilled jobs in Australia, supporting regional WA communities and contributing to government revenue.”

Part of the original development plan for Gorgon, Gorgon Stage 3 is the first in a series of planned subsea tiebacks.

The development involves the installation of three manifolds and a 35-kilometre production flowline among other associated infrastructure.

Six wells will be drilled in the two fields located about 100 kilometres northwest of Barrow Island in water depths of about 1300 metres.

“Gorgon Stage 3 is a cost-competitive development which will optimise existing infrastructure and complement the well-progressed Jansz-Io Compression Project and previously completed Gorgon Stage 2 infill development,” Krishnamurthy said.

Gorgon has the capacity to produce 300 terajoules per day of gas for the WA market and 15.6 million tonnes of LNG per year.

About Gorgon project

The Chevron-operated Gorgon Project is a joint venture between the Australian subsidiaries of Chevron (47.33 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), MidOcean (1 percent) and JERA (0.417 percent).

About Chevron Australia

Chevron is one of the world's leading integrated energy companies and through its Australian subsidiaries, has been present in Australia for more than 70 years. With the ingenuity and commitment of thousands of workers, Chevron Australia operates the Gorgon and Wheatstone natural gas facilities; manages its equal one-sixth interest in the North West Shelf Venture; progressing the decommissioning of Australia’s largest onshore oilfield on Barrow Island; and is a significant investor in exploration. Chevron Australia Downstream delivers quality fuels and lubricants primarily via its Caltex network of service stations across Australia.