Chevron Australia may retain its share of the North West Shelf gas project offshore Western Australia after reconsidering its position when a formal sale process first mentioned in 2020 failed to draw a suitable price (OGJ Online, June 18, 2020).
News of the change came during a late-January analyst briefing when Chevron Chief Executive Officer Michael Wirth said the company had made ‘an accounting adjustment’ on its 16.67% interest in the project because it was no longer classified as held for sale.
The Woodside Petroleum-operated project, now 35 years old, is expected to transition into a toll treatment facility during the next decade as gas reserves in its own fields decline.
The Woodside joint venture recently made commercial agreements with the Mitsui-Beach Energy joint venture and the Australian Gas Infrastructure Group to treat gas from the onshore North Perth basin Waitsia gas project near Dongera.
Another North Perth basin developer, Strike Energy, expressed similar interest for production from its West Erregulla gas discovery while the delayed Woodside-operated Browse project is also a potential candidate for production and processing through the NW Shelf infrastructure.
Woodside has since doubled its interest in the NW Shelf project to 33.34% through its acquisition of BHP’s petroleum division.
Other interest holders are BP, Japan Australia LNG, and Shell, all with 16.67%.
