Agreement Also Provides Utility a Stake in Gas Fields, Processing
Plant in Northwestern Australia
SAN RAMON, Calif.--(BUSINESS WIRE)--Dec. 5, 2009--
Chevron Corporation (NYSE: CVX) today announced that its subsidiary,
Chevron Australia Pty Ltd, has signed a Heads of Agreement (HOA) with
the Tokyo Electric Power Company (TEPCO) to deliver 4.1 million tons per
annum (MTPA) of liquefied natural gas (LNG) for up to 20 years from the
Wheatstone Project in northwestern Australia.
Under the agreement, TEPCO also intends to acquire 15 percent of
Chevron’s equity share in the Wheatstone field licenses and an 11.25
percent interest in the Wheatstone natural gas processing facilities to
be developed onshore near Onslow in northwestern Australia.
“We are pleased to welcome TEPCO as a foundation customer and equity
partner in the Wheatstone project as we move the development forward.
This HOA further demonstrates that Wheatstone is well positioned to
deliver energy to the Asia-Pacific region,” said George Kirkland,
executive vice president, Chevron Global Upstream and Gas.
“TEPCO is among the most experienced LNG buyers in the world. Their
commitment to secure long-term LNG supplies from Wheatstone is a strong
demonstration of their confidence in Chevron and represents another
important step forward for the project,” said John Gass, president,
Chevron Global Gas.
The initial phase of the Wheatstone project will have the capacity to
process 8.6 MTPA of LNG and will include a domestic gas plant. A final
investment decision is expected in 2011.
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 a 8.75
percent interest in the project.
Chevron Corporation is one of the world's leading integrated energy
companies, with subsidiaries that conduct business worldwide. The
company's success is driven by the ingenuity and commitment of
approximately 62,000 employees who operate across the energy spectrum.
Chevron explores for, produces and transports crude oil and natural gas;
refines, markets and distributes transportation fuels and other energy
products; manufactures and sells petrochemical products; generates power
and produces geothermal energy; provides energy efficiency solutions;
and develops the energy resources of the future, including biofuels and
other renewables. Chevron is based in San Ramon, Calif. More information
about Chevron is available at www.chevron.com.
Cautionary Statement Relevant to Forward-Looking Information for the
Purpose of "Safe Harbor" Provisions of the Private Securities Litigation
Reform Act of 1995.
Some of the items discussed in this press release are forward-looking
statements about Chevron's activities in Australia. Words such as
"anticipates," "expects," "intends," "plans," "targets," "projects,"
"believes," "seeks," "estimates," "budgets" and similar expressions are
intended to identify such forward-looking statements. The statements are
based upon management's current expectations, estimates and projections;
are not guarantees of future performance; and are subject to certain
risks, uncertainties and other factors, some of which are beyond the
company's control and are difficult to predict. Among the factors that
could cause actual results to differ materially are changes in prices
of, demand for and supply of crude oil and natural gas; actions of
competitors; the inability or failure of the company’s joint-venture
partners to fund their share of operations and development activities;
the potential failure to achieve expected net production from existing
and future crude-oil and natural-gas development projects; potential
delays in the development, construction or start-up of planned projects;
the potential disruption or interruption of production and development
activities due to war, accidents, political events, civil unrest, or
severe weather; government-mandated sales, divestitures,
recapitalizations and changes in fiscal terms or restrictions on scope
of company operations; and general economic and political conditions.
You should not place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. Unless legally
required, Chevron undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Source: Chevron Corporation
Chevron Corporation
Gareth Johnstone, +65 9728 8375, Singapore
Margaret
Cooper, +1-713-372-4919, Houston
