| OIL
& GAS - Gorgon
The Gorgon project is an LNG facility
to be located on Barrow Island in Western Australia, and will include
two LNG processing trains, each with a capacity of 5 million tonnes
per annum (MTPA). About three shipments a week are expected to leave
a dedicated LNG loading jetty.
The subsea gas-gathering system
will be located on the sea floor at the Greater Gorgon gas fields
west of Barrow Island in 200-1000m water depth. It is anticipated
that between 20 and 30 wells would be drilled in the Gorgon area
gas fields over a 30-year period. The number of development wells
and timing of construction will depend on future gas demand. The
key components of the sub-sea gathering system include: development
wells, subsea trees, cluster manifolds, pipeline end-manifolds,
flowlines, MEG and utility pipeline, two 30-inch pipelines to Barrow
Island and a control system including 180km subsea umbilical from
Barrow Island to the Jansz subsea manifold. Horizontal directional
drilling will be employed to minimise the impact of the shore crossings
on local flora and fauna.
It is proposed that much of Gorgon's
reservoir carbon dioxide be removed for disposal underground; it
will be piped from the processing plant to wells drilled on the
island for injection into 2500m deep saline aquifers. The Australian
Government made an A$60-million offer to support the efforts of
the Gorgon joint venturers to reduce greenhouse gas emissions for
the proposed Gorgon project. The offer was to be funded by the government's
A$500-million Low Emissions Technology Demonstration Fund, which
is designed to address the risk and capital costs of demonstrating
low emissions technologies to ensure they are commercially viable
in the longer term. The three-year work program for the permit area
includes geotechnical studies, 180 km (110 mi) of 2D seismic reprocessing,
1,700 sq km (650 sq mi) of 3D seismic survey acquisition, and the
drilling of an exploration well in the additional acreage in permit
W06-12. Seismic work will begin this year. There is potential for
a further three-year work program in the Carnarvon basin acreage,
covering an area of 3,100 sq km (1,200 sq mi) approximately 100
km (60 mi) northwest of the Australian coastline.
J P Kenny Pty Ltd and Technip
Oceania Pty Ltd have been selected in a Gorgon Upstream Joint Venture
(GUJV) as the front end engineering and design (FEED) and engineering,
procurement, construction and management (EPCM) contractor with
respect to the upstream facilities for the Greater Gorgon development.
FMC Technologies and Vetco Gray are the two shortlisted subsea equipment
vendors. Both vendors have performed FEED studies to take their
proposed solutions forward and both companies will be included in
the tender process.
The Kellogg Joint Venture - Gorgon
(KJV-G) including KBR, JGC Corporation of Japan, and Australian-based
partners Clough Projects Australia Pty Ltd. and Hatch Associates
Pty Ltd have been selected to perform the FEED for the downstream
part of the project.
Chevron will delay the final investment
decision on the project for at least six months to mid-2007 despite
getting the environmental go-ahead for the development from state
regulators. The project is now likely to cost more than $16 billion,
$5 billion more than first thought.
Chevron is the field operator
with 50% equity with Shell and ExxonMobil sharing 25% each for the
relevant permits.
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