'Uncertainty' in gas project
Some areas of construction "still need to improve" after Gorgon costs surged on gains in the Australian dollar, higher labour expenses and weather delays, Chevron chief financial officer Pat Yarrington said late on Friday.
Labour productivity at Gorgon, located on Barrow Island off north-western Australia, had increased, she said.
Chevron, the second-largest US oil producer by market value, was completing its budget for the year and would inform investors of any potential cost changes, she said.
Royal Dutch Shell and ExxonMobil are partners in Gorgon, which Ms Yarrington said was more than 70 per cent complete.
"Productivity, I would say, is improving on all fronts, but there are still some areas that still need to improve," she said. "We are moving into a critical phase from a schedule standpoint on the project."
Gorgon is one of seven liquefied natural gas projects being built in Australia to meet rising Asian demand for the commodity. Chevron said it would weigh an expansion of Gorgon against competing investment proposals as costs in the country put Australia's competitiveness at risk.
"There are still uncertainties that exist with a project of our size," Ms Yarrington said. "Our challenge every day is to mitigate the risks as they arrive."
Frequently Asked Questions about this Article…
The Gorgon natural gas project is a $52 billion venture located on Barrow Island off north-western Australia. It is operated by Chevron, with Royal Dutch Shell and ExxonMobil as partners, and is one of seven liquefied natural gas projects being built in Australia to meet rising Asian demand.
The Gorgon natural gas project is a $52 billion venture located on Barrow Island off north-western Australia. It is operated by Chevron, with Royal Dutch Shell and ExxonMobil as partners. The project aims to meet rising Asian demand for liquefied natural gas.
The budget for the Gorgon project increased by 21% last year due to gains in the Australian dollar, higher labor expenses, and weather delays.
The budget for the Gorgon project increased by 21% last year due to gains in the Australian dollar, higher labor expenses, and weather delays. These factors contributed to the surge in costs.
The Gorgon project is facing challenges such as construction uncertainties, the need for improved productivity in certain areas, and the risk of increased costs affecting Australia's competitiveness.
The Gorgon project faces challenges such as uncertainties in construction, areas needing improvement, and the need to mitigate risks as they arise. Despite these challenges, productivity is improving.
As of the latest update, the Gorgon project is more than 70% complete.
As of the latest update, the Gorgon project is more than 70% complete. Chevron is moving into a critical phase from a schedule standpoint.
Chevron is the operator of the Gorgon project and is responsible for managing its construction and budget. They are also tasked with mitigating risks as they arise.
Chevron is the operator of the Gorgon natural gas project. It is responsible for managing the construction and addressing any uncertainties or challenges that arise during the project's development.
Labor productivity at the Gorgon project has increased, although there are still areas that need improvement.
Labor productivity at the Gorgon project has increased, which is a positive development. However, there are still areas that need improvement to ensure the project's success.
Chevron is considering an expansion of the Gorgon project, weighing it against other investment proposals. The company is also focused on completing the project while managing costs and risks.
Chevron is considering an expansion of the Gorgon project by weighing it against competing investment proposals. The high costs in Australia are a factor that could affect the country's competitiveness and influence the decision.
The rising costs associated with the Gorgon project pose a risk to Australia's competitiveness in the global natural gas market, as Chevron evaluates the project's expansion against other investment opportunities.
Chevron is actively working to mitigate risks and address uncertainties as they arise in the Gorgon project. The company is focused on improving productivity and managing the project's schedule effectively.
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