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

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16th September 2009, 11:00am - Views: 895

Chevron Australia Pty Ltd
ABN 29 086 197 757
250 St Georges Terrace
Perth WA 6000
Tel: + 61 8 9216 4000
Fax: + 61 8 9216 4444

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.


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

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

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; timely completion of the
development of the fields; the potential failure to achieve expected net production from existing and future crude-oil
and natural-gas development projects; the company's acquisition or disposition of assets; the inability or failure of the
company's joint-venture partners to fund their share of operations and development activities; 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; general economic and political conditions; and the factors set forth under the heading
"Risk Factors" on pages 30 and 31 of the company's 2008 Annual Report on Form 10-K. The reader 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.

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