Chevron Exits Australian Shale Gas Project
Chevron has decided to exit the Australian shale gas exploration space.
According to a statement released Friday by Beach Energy, which is a partner in the Australian shale gas project, Chevron Exploration Australia 1 Pty Ltd has decided that it will not participate in Stage 2 of the Nappamerri Trough Natural Gas (NTNG) project in Cooper Basin.
“Chevron informed Beach that extensive technical evaluation has confirmed a large gas resource and potential for further appraisal. However, at this time the opportunity does not align strategically with Chevron’s global exploration and development portfolio. Chevron’s spending on exploration is being highâgraded and significantly reduced in response to market conditions,” the statement said.
As a result of this decision, all Chevron equity interests in the joint ventures will return to Beach for nil consideration, and no return of Stage 1 capital expenditure is payable by Beach to Chevron. Beach now holds 100 per cent of PRL 33 and PRL 49 permits in South Australia and 64.9 per cent of ATP855 in Queensland. Icon Energy holds 35.1 per cent of ATP855 .
Beach Managing Director, Rob Cole, said “We are grateful to Chevron for their significant contribution to the NTNG project. Beach considers that the Stage 1 program, designed as an exploration phase, achieved its primary technical objectives. We now better understand the geology through the delineation of target zones and identification of additional targets beyond the early REM shale play. We have also proved the ability to fracture stimulate, successfully flowed gas to surface and tested deliverability. We look forward to progressing the NTNG project at a pace consistent with prevailing market conditions.”
California based Chevron on Friday had also announced its decision to sell 50 percent shareholding in Caltex Australia Limited (CAL).