Chevron And Kogas Sign Gorgon Gas Deal Represents The Largest, Long-term Lng Sale Signed Between Aus

Chevron Australia Pty Ltd
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Chevron and KOGAS Sign Gorgon Gas Deal

Represents the largest, long-term LNG sale signed between Australia and Korea



PERTH, Western Australia, 16 September 2009 Australian subsidiaries of Chevron

Corporation and Korea Gas Corporation (KOGAS) have signed a Heads of Agreement (HOA) in

Perth last night for the delivery of 1.5 million tonnes per annum (MTPA) of Liquefied Natural Gas

(LNG) for 15 years from the Gorgon Project.

As part of the arrangement, Chevron and KOGAS have an option to extend the agreement

for a further five years. The parties are also discussing LNG sales and an equity purchase from

Chevron's Wheatstone Project, to be located in the western Pilbara region about 200 kilometres

south of the Wheatstone natural gas field.

Chevron Australia Managing Director Roy Krzywosinski, welcomed KOGAS as a major

customer of the Gorgon Project, which received approval to start construction earlier this week.

"This agreement represents the largest, long-term LNG sale between Australia and Korea,

and the first long term sale between KOGAS and an Australian supplier. Korea is the world's

second largest importer of LNG and is a desirable market for LNG," said Krzywosinski.

"The sale of Gorgon LNG to Korea reflects Australia's growing reputation as an LNG

supplier. We expect to build on this relationship with KOGAS as we move forward with our

Australian LNG projects."

This announcement follows Sale and Purchase Agreements with GS Caltex, Osaka Gas and

Tokyo Gas, which were announced on 10 September 2009. Chevron expects additional agreements

for the sale of Gorgon LNG to be executed in the coming months.

KOGAS was incorporated by the Korean Government in 1983 and has grown to become the

largest single LNG buyer in the world. It operates three LNG import terminals as well as a gas

pipeline network spanning more than 2700 kilometres across Korea.

The Gorgon Project is operated by Chevron Australia Pty Ltd (50 percent) in joint venture

with the Australian subsidiaries of ExxonMobil (25 percent) and Shell (25 percent). The project's

scope includes a three-train, 15 MTPA LNG facility; a carbon dioxide injection project expected to

be the world's largest; and a domestic gas plant.


Chevron is one of the world's leading integrated energy companies and through its

Australian subsidiaries, has been present in Australia for more than 50 years. With the ingenuity

and commitment of more than 1,400 people, Chevron Australia leads the development of the

Gorgon and Wheatstone natural gas projects; manages its equal one-sixth interest in the North West

Shelf Venture; and operates Australia's largest onshore oilfield on Barrow Island and the Thevenard

Island oilfields. The company is also a participant in the Browse liquefied natural gas development

and is a significant investor in exploration offshore northwest Australia, one of Chevron's four

global focus areas for exploration.

In addition, Chevron's Perth-based Global Technology Centre provides technology support

and solutions to the company's operations in Australia and around the world.

www.ChevronAustralia.com



Ends



Contact: Nicole Hodgson, +61 8 9216 4485 or [email protected]

Guy Houston, +61 8 9485 5745 or [email protected]



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