Chevron launches Gorgon cost review

Costs fear: the Gorgon project in Western Australia

KENTZ

By Russell Searancke Wellington

 02 August 2012 22:59 GMT

Chevron has begun a detailed cost review of its $37 billion ­Gorgon liquefied natural gas project in Australia in the face of uncertainties about Australian labour costs and the exchange rate.

The company has faced persistent questioning in the past year about its project costs and schedule, and up until now has maintained that its budget and start-up were on track.

However, the company’s executive vice president for upstream and gas, George Kirkland, said the detailed cost review is under way and will be completed towards the end of this year.

He pinpointed a number of “variables” including a 20% increase in the Australian dollar since the project had been sanctioned and weather-related issues that had impacted on work at Barrow ­Island, where the…

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