Issue Two Summer 2009/10
Frontier
Exploring our People, Partnership and Performance
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Headline - 48pt Bold
New Partners Welcome
- 24pt Light
atSubhead
Wheatstone
Gorgon
Breaking New Ground
on Barrow Island
Reducing our
carbon footprint
Giving back to
the community
FOCUS Environment
competition
Running Header-9pt Bold
Planning for
Tomorrow’s
Energy Needs
Chevron Australia
Part of Australia
Since the Early 1950s
The word ‘Frontier’ is a metaphor
for Chevron’s position in Australia
and reflects our People, Partnerships
Contents
and Performance as we move our
mega-projects forward.
We’re entering a new era of energy
4 Message from the MD
in Australia, embracing new
frontiers in deepwater operations,
6 Gorgon Project
with the development of our two
LNG and domestic gas mega-projects
It’s our “Frontier” approach to all
we do that will help secure energy
supplies and boost the Australian
economy for decades.
This, coupled with our commitment to
striving for world-class performance
when exploring and developing gas
resources in an ever-challenging
deepwater environment offshore
north-west Australia, underpins our
long-term approach to all that we do.
For us, it’s all about Providing Energy
for Human Progress.
Frontier
Issue Two
Summer 2009/10
Editor
Nicole Hodgson
Sub Editor
Valma Ozich
Contributors
James Bowie
Kasey Ellison
Karen Gregory
Guy Houston
Lauren Jenkin
Peter Kermode
Carina Peart
Emma Sandys
Melissa Smith
Cameron Van Ast
Tiffany Winch-Buist
Mark Worthington
Design by BKAYDesign
1 1 New Partners Welcome at Wheatstone
Chevron's one of the world's leading
integrated energy companies. With the
ingenuity and commitment of more than
1, 500 people, Chevron Australia not only
leads the development of the Gorgon
and Wheatstone natural gas projects, but
manages its equal one-sixth interest in the
North West Shelf Venture and operates
Australia's largest onshore oil field on
Barrow Island and the Thevenard Island
oilfields. We're also a participant in the
Browse liquefied natural gas development.
1 2 Volunteering in the Community
16 FOCUS Environment Competition
18 Maximising Oil Production
Significantly, Chevron's Global Technology
Centre is based in Perth — providing
technology support and solutions for its
operations throughout the world.
22 Reducing our Carbon Footprint
But no matter what the project or focus area,
there is one constant thread to everything
we do — our commitment to working The
Chevron Way; to be the global energy
company most admired for its people,
partnership and performance.
24 Putting Safety First
28 Setting the Standard Globally
chevronaustralia.com
 On
the Cover Western Australian Premier, the Hon. Colin Barnett, MLA, centre, with Chevron Australia Managing Director Roy Krzywosinski, left,
George Kirkland,
Executive
Vice President,
Chevron Global Upstream and Gas, on Barrow Island for the momentous Gorgon ground breaking ceremony
2 | and
Frontier
Magazine | Summer
2009/10
(see feature story pages 6 – 7).
CHEVA7801
— Gorgon and Wheatstone.
Frontier Magazine | Summer 2009/10 | 3
Message from the MD
Message from the MD
Construction of the accommodation
Our goal is for Wheatstone to follow
complex — which will house more than
closely behind Gorgon, allowing us to
3000 construction workers — will be
capture synergies in project
one of the first facilities to be built at
management and purchasing power.
the site. The completion of phase one
Chevron has a strong track record
of the village will be a key deliverable
of successfully managing numerous
for Chevron Australia in 2010.
mega projects simultaneously. The
Gorgon is a massive investment –
the largest development in Chevron’s
 Roy
Krzywosinski acknowledging key
stakeholders at the Mark a Moment in History
event - on the eve of the Gorgon Project ground
breaking ceremony on Barrow Island.
As the year draws to a close and
we reflect on Chevron Australia’s
achievements during the past 12
months, it is apparent that 2009
will be remembered as one of our
most successful years.
We achieved major operational goals,
which were significant not only for
Chevron Australia and the wider
Corporation, but for helping to
strengthen the Australian economy
and meeting the Asia-Pacific’s
growing energy demand.
Our 2009 milestones, some of which
are listed here, validate Chevron’s
strong resolve that natural gas is a
premium commodity, and a smart
investment — now and into the future:
•achieving Final Investment Decision
(FID) for the AUD$43 billion
Gorgon Project;
•signing of key commercial
agreements for Gorgon gas with
Tokyo Gas, Osaka Gas, Chubu
Electric and GS Caltex
Completing sales and purchase
economy over the coming decades
agreements and heads of agreements
will be sizable.
for these projects will also be a key focus
the Australian economy, we are also
supporting the communities in the
north-west of Western Australia.
and a heads of agreement (HOA)
with Korea Gas Corporation;
Chevron Australia also received
•welcoming Apache and KUFPEC
to the Wheatstone Project in an
industry-first, third party gas
supply partnership;
key focus areas — safety, for which we
•awarding major front-end
engineering and design
(FEED) contracts for the
Wheatstone Project;
(APPEA) — and diversity, for which we
•signing a landmark HOA with Tokyo
Electric Power Company (TEPCO) for
4.1 MTPA of Wheatstone gas for up to
20 years and an equity interest;
•exploration success with Clio-2,
Kentish Knock-1, Achilles-1
and Satyr-1;
•securing additional
exploration acreage;
•celebrating 25 years of domestic
gas production and 20 years of
LNG exports with our North West
Shelf partners; and
•becoming a foundation partner
of the Federal Government’s
Global Carbon Capture and
Storage Institute.
4 | Frontier Magazine | Summer 2009/10
industry recognition for two of our
received a Safety Performance Award
from the Australian Petroleum
Production & Exploration Association
received an Employer of Choice for
Women Award.
required to deliver our major capital
projects and our aggressive
burning fuel for generations to come.
aggressive exploration and appraisal
partnerships with:
program into 2010 — to find new
• Onslow Primary School to improve
student retention and attendance;
• Royal Flying Doctor Service (RFDS)
to expand its services in WA; and
• Road Safety Council to promote road
safety across our WA operations.
resources to underpin Wheatstone’s
foundation, Gorgon’s expansion and
partnership in the North West Shelf
and Browse Ventures — our holdings in
the Asia-Pacific region are the largest
in our competitor group and prove that
natural gas will clearly have a larger
year, with more than $120,000 allocated
role in our future portfolio.
Chevron is developing legacy gas
projects which represent long-term
And it is the community of Onslow
growth engines for the region and
that Chevron will be more closely
Western Australia.
next gas project in the development
queue – Wheatstone – moves forward.
exploration and appraisal program.
In early December, we signed an
This positions us well for the future,
historic deal with TEPCO which
during which our massive Gorgon
positions us well with a premier LNG
Project will gain momentum. In early
customer — representing Australia's
December, we heralded the start of
largest LNG export deal.
construction with a commemorative
We are on track to submit our draft
ground breaking ceremony on
environmental impact statement to the
Barrow Island.
State and Federal authorities next year.
Together this mix
will position us for
success for many more
years to come."
Through Gorgon, Wheatstone and our
Community Spirit Grants program this
associated with during 2010, as our
We have the assets, the
organisational expertise
and prime access to the
Asia-Pacific market.
to help power the region.
In addition, we also continued our
Exmouth, Onslow, Karratha and Dampier.
achieving the organisational capability
and Wheatstone will supply cleaner-
It is for this reason we will continue our
organisational growth this year and
a diverse workforce is critical to
Australia and the Asia-Pacific, Gorgon
of new initiatives, including
across 28 community organisations in
1500 people. Attracting and retaining
next year. For customers in Western
In 2009, we have launched a number
We have also experienced significant
our workforce now stands at more than
Gorgon and Wheatstone is very exciting.
history and its impact on the nation’s
In addition to direct expenditure to
From the MD’s Desk
opportunity to do this in Australia with
"Chevron is developing
legacy gas projects
which represent longterm growth engines
for the region and
Western Australia.
We have the assets, the organisational
expertise and prime access to the
Asia-Pacific market.
Together this mix will position us for
success for many more years to come.
Roy J. Krzywosinski
Chevron Australia Managing Director.
Frontier Magazine | Summer 2009/10 | 5
Gorgon Project
Gorgon Project
Ground Breaking Ceremony Marks
Start of Gorgon Construction
Gorgon Already Benefiting the Economy
– Western Australian Premier
For Western Australian Premier,
Businesses including Howard Porter,
However, Mr Ferguson added that
the Hon. Colin Barnett, it’s the tangible
Mermaid Marine, Ertech and Laing
importantly, Gorgon would also be
benefits of a project that will mark
O’Rourke were among those
the world’s largest Carbon Capture
its success.
awarded contracts.
and Storage (CCS) project and help
“The scale of the project is big, but it’s
And while the majority of revenues
the flow-on benefits to WA companies
from the project will flow to the
and the creation of jobs as a result
Commonwealth, the Premier
that provide tangible benefits to local
welcomed the Federal Government’s
“The Gorgon Project will store up to 4
people and their families,” he said,
pledge to spend 25 percent of
million tonnes of CO2 a year, an amount
when on Barrow Island for the ground
expected Petroleum Resource Rent
comparable to all the CO2 geologically
breaking ceremony.
Tax from the project, worth up to
stored every year globally at present,”
$100 million a year, on WA
he said. “With total gas resources of 40 trillion
cubic feet, Gorgon will be the biggest
of having 20 industrial-scale CCS sites
operating by 2020.
infrastructure projects.
“Gorgon will also underpin energy
resources project in Australia’s history
Federal Minister for Resources and
security in our region and bolster
and make a significant contribution
Energy, Martin Ferguson AM, MP, also
Australia’s reputation as a reliable
towards Western Australia’s prosperity
at the event, echoed the Premier’s
Liquefied Natural Gas (LNG) supplier.
in the next 30 years.
economic sentiments.
“Hundreds of millions of dollars
“Gorgon will generate $40 billion in
has already been sold to buyers in
will be spent on ongoing, long-term
tax revenue, which will fund schools,
India, China, South Korea and Japan
maintenance and service contracts.”
hospitals, roads and infrastructure for
and global demand for LNG is forecast
decades to come, Mr Ferguson said. to triple by 2030 as developed and
Mr Barnett said benefits from the
 Turning
the first sod on Barrow Island to mark the start of the Gorgon Project construction, is (from left to right) the Hon. Martin Ferguson AM, MP, Federal
Minister for Resources and Energy; The Hon. Colin Barnett MLA, Premier of Western Australia; George Kirkland, Executive Vice President, Chevron Global
Upstream and Gas; Roy Krzywosinski, Chevron Australia Managing Director and Jim Blackwell, President, Chevron Asia Pacific Exploration and Production.
Australia contribute to the G8’s goal
“Almost $150 billion of Gorgon gas
developing nations look to increase use
project were already flowing to
Already more than $15 billion worth of
locally-based construction and
contracts had been let, generating jobs
manufacturing companies. and boosting the economy.
of the lower-emission transition fuel.”
Construction of Australia’s largest single resource project
Chevron Australia and its joint venture
Australia, His Excellency Jeffrey Bleich,
Chevron Australia Managing Director,
Since the Gorgon Project was
participants, ExxonMobil and Shell
customers, contractors and other
Roy Krzywosinski, said the Gorgon
sanctioned in September, preliminary
invited dignitaries.
Project was forecast to create more
site works have started.
commemorated the official start of
construction of the AUD$43 billion
Gorgon natural gas project
with a special ground breaking
ceremony on Barrow Island off the
Pilbara coast of Western Australia.
Senior executives from Chevron, Shell
and ExxonMobil were joined on the
site of the proposed gas processing
facility in early December by Western
President of Chevron Asia Pacific
Exploration and Production, Jim
Blackwell, said Gorgon was a legacy
project for Chevron.
“The Greater Gorgon area is estimated
to have 40 trillion cubic feet of natural
gas resources and is well positioned to
meet the growing demand for natural
Australian Premier, the Hon. Colin
gas in the Asia-Pacific region,”
Barnett MLA; Federal Minister for
Mr Blackwell said.
Resources and Energy, the Hon. Martin
“This is Australia’s largest single
Ferguson AM, MP; US Ambassador to
resource project.”
6 | Frontier Magazine | Summer 2009/10
than 10,000 direct and indirect jobs
The accommodation complex to house
and result in more than AUD$33 billion
more than 3000 construction workers
being spent on Australian goods and
will be one of the first facilities to be
services over its first 30 years.
built at the site.
He added that construction of the
“Major construction activity is expected
project would take about five years
to commence in the second half of
with first gas due in 2014.
2010,” Chevron Australia Managing
The Gorgon Project is operated by
Director Roy Krzywosinski said.
Chevron (47.75 percent) in joint
Significantly, the Gorgon site
venture with ExxonMobil (25 percent),
Shell (25 percent), Osaka Gas (1.25
percent) and Tokyo Gas (one percent).
comprised 300 hectares of land  George
Kirkland, Chevron Executive Vice President, Global Upstream and Gas, centre, unveils the
Gorgon Project Construction Site with Premier of Western Australia, the Hon. Colin Barnett MLA,
left, and the Hon. Martin Ferguson AM, MP, Federal Minister for Resources and Energy.
or about 1.3 percent of Barrow Island’s
uncleared land area.
Frontier Magazine | Summer 2009/10 | 7
Gorgon Project
Gorgon Project
A New Era of Energy
Gorgon’s Making Pipe
Contracts
Awarded
The first tangible pieces of pipe are
The UOE method of pipe manufacture
The pipes will be used to develop the
being made which will form part of
uses an “U” and “O” press and then
shore crossing to Barrow Island using
the world’s most advanced line pipe
expands the pipe to produce thick-
the Horizontally Directionally Drilled
and subsea infrastructure used on
walled and collapse-resistant pipes
(HDD) installation method. This process
Australia’s single largest resource
that can withstand extreme pressures,
will minimise the environmental impact
project — Gorgon.
both internal and external.
as it only requires drilling a hole rather
Since the Gorgon Project’s Final
The pipes are 34 inches in
than excavating a deep trench across
Investment Decision in September
Gorgon’s subsea development will
diameter; 12.2 metres long, so that
the shoreline.
more than AUD$15 billion in
include some of the thickest Double
Submerged Arc Welded (DSAW)
the maximum length will fit on the
The contract for manufacturing
production pipes ever manufactured
back of a standard truck, and weigh
the piping was awarded to Corus.
using the U-ing, O-ing and Expanding
over 10 tonnes each – equalling the
(UOE) method.
weight of two African elephants!
contracts has been awarded, laying
the foundations of what will be one
of the world’s largest gas projects.
Contracting and Procurement is
on track with:
• Supply bases secured
Getting Down to Business
• Key logistics packages awarded
The Chevron-operated Gorgon Project
An area has been secured in a light
provide a significant and lasting
continues to make its mark on the
industrial estate located in South
improvement to the State’s marine
State’s economy with new agreements
Guildford to serve as an interim supply
supply industry,” Mr Scheer said.
and substantial development work
base while the metropolitan supply
on its Dampier and metropolitan
base is under construction.
supply bases.
“Wash-down and quarantine areas
support best-in-industry stringent
In the north-west, Mermaid Marine
controls to maintain and protect the
Greater Gorgon Area General Manager
Australia (MMA) has completed the
unique environment of Barrow Island.”
Colin Beckett said that the investment
wharf extension on time and under
committed to these supply bases was in
budget at the project’s Dampier
excess of $AUD100 million.
Supply Base.
Mr Beckett said preparation work had
This key development, along with the
already started at the common user
construction of a 2,250 square metre
facilities at the Australian Marine
warehouse, also managed by MMA,
Complex (AMC) in Henderson (Pg 25).
will support multiple clients operating
Gorgon has also entered into an
agreement to access a further eight
hectares of land in the industrial
• Accommodation camps awarded
• Key infrastructure contracts
awarded
Many of the contracts awarded
 Giving the green light to Gorgon are (from left to right) Western Australian Premier the Hon. Colin
Barnett, MLA, George Kirkland, Chevron Global Upstream and Gas Executive Vice President;
ExxonMobil’s Al Hirshberg; and Shell’s Jon Chadwick.
over the last quarter include
a large percentage of local,
The development of natural gas in
The significance of the project on a
Australian and regional content
Western Australia entered a new era
national scale was also highlighted.
and an estimated AUD$20 billion
on 14 September 2009 when a final
will ultimately flow to Australian
investment decision on the Gorgon
industry from the project’s
Project was announced by the Gorgon
construction phase.
Joint Venture Participants.
See the News Update on Pg 26.
The green light for the project was
investment decision of the Gorgon
achieved after the granting of
Joint Venture Partners,” Minister
production licenses and final state
Ferguson said.
“The Australian Government
welcomes the jobs, export earnings,
and global greenhouse gas abatement
which will flow from today’s final
development approval, which was
in the region and effectively double
received at a signing ceremony attended
the capacity of the project's Dampier
by Western Australian Premier the
Supply Base.
The Gorgon Project was also going
to make an impact on the industry
internationally.
Hon. Colin Barnett, MLA and Federal
precinct adjacent to the AMC to serve
Gorgon’s Logistics Manager, Heinz
Minister for Resources and Energy the
“What we do here today sets a
as a longer term Perth supply base
Scheer, said the supply base facilities
Hon. Martin Ferguson AM, MP.
new standard for the world to
for the project.
would minimise the environmental
“Our metropolitan supply base is
expected to be operational by mid-2010
impacts and disturbance on
“The supply base facilities will reduce
preparation work to begin shortly,”
the area used and work undertaken
Mr Beckett said.
directly on the island by providing
Global Upstream and Gas, Chevron
project in Australia’s history and
Barrow Island.
for an initial period of 10 years with
emulate,” Executive Vice President,
“This will be the largest resources
Corporation, George Kirkland said.
make a significant contribution
 Mermaid Marine workers on site during the
up-grade of Dampier Supply Base.
towards Western Australia’s prosperity
“Gorgon redefines what technically
over the next 30 years,” Premier
complex, environmentally responsible
Barnett said at the ceremony.
projects will look like,” Mr Kirkland said.
water access for shipping. It will also
8 | Frontier Magazine | Summer 2009/10
Frontier Magazine | Summer 2009/10 | 9
Barrow Island Quarantine
New Partners Welcome
Chevron Attracts Third Party
Gas to Wheatstone
As part of its quarantine commitment
“Our Quarantine Management System
studies on the island’s flora and fauna,
to Barrow Island — home of the Gorgon
is at the core of that commitment —
and will continue to work closely with
Project — Chevron has developed and
and our track record is impressive,”
Chevron to uphold its rigorous
implemented a comprehensive
Mr Van Der Merwe said.
quarantine regime.
Chevron’s ambition to position
“The island’s Class A Nature Reserve
“Most importantly, the success of
the Wheatstone Project as an
Designed to detect the presence
status has been maintained over
the surveillance system relies on the
LNG production hub received
of non-indigenous species
the past 40 years while being home
vigilance of everyone in the project to
(NIS) on the island, this system
to Australia’s largest operating
remain alert and work together as one
is setting a new benchmark for
onshore oilfield.
team to protect Barrow Island for
local subsidiaries of Apache
environmental protection.
“And this will continue long past the
future generations,” Mr Van Der
Corporation and Kuwait
Merwe concluded.
Foreign Petroleum Exploration
Developed with leading experts
life of the Gorgon Project.”
a major boost recently with
at the Cooperative Research Centre
Mr Van Der Merwe said that Chevron’s
Company (KUFPEC) signing
for National Plant Biosecurity and
surveillance system would play a vital
deals to join the project as
Queensland University, it is comprised
role in protecting the conservation
of three integrated surveillance
values of the island by detecting the
systems, based on a number of
presence of NIS early enough to enable
vertebrate, invertebrate and plant
eradication — without serious harm to
species. Each of these systems
the environment.
employ different detection methods
The system had already exceeded the
which increases their capacity to
government requirement for 80
detect at least 80 percent of NIS while
natural gas suppliers and
25 percent equity partners.
percent certainty of detecting NIS
the population is still small and can be
every time Chevron conducted a
readily eradicated — in line with
survey — which could be several
government requirements.
times a year.
Gorgon Quarantine Manager Johann
To date, a number of consultants
Van Der Merwe said Chevron was 100
from Curtin University and Astron
percent committed to safeguarding
Environmental Services have
Barrow Island.
undertaken routine surveys and
 Dr Nihara Gunawardene, from Curtin
University, suction sampling vegetation
for day active invertebrates. Photo courtesy
of Shae Callan.
Award Recognises Vigilance
Barrow Island Quarantine Coordinator, Greg Ratajczak, was recently presented with a certificate of
commendation from the Australian Quarantine and Inspection Service (AQIS).
The award acknowledged his contribution to Australian quarantine and biosecurity management.
Chevron
Australian Managing Director Roy Krzywosinski, front row, centre, with Keith Dowling
(Apache), left, David Osborne (KUFPEC) right, and back row, left to right, Guy Marchesani (Apache),
Geoff Strong (Wheatstone General Manager) and Michael Cross (KUFPEC).
Under the agreements, Apache
Wheatstone General Manager Geoff
and KUFPEC will provide gas from
Strong added that the Ashburton
their Julimar and Brunello fields to
North site, just west of Onslow in
supply 25 percent of the inlet gas to
WA’s north-west, could be easily
Chevron signs landmark HOA with
Wheatstone’s first two LNG trains.
expanded to handle more Chevron
TEPCO for 4.1 MTPA of Wheatstone
Apache will assume a 16.25 percent
and third party gas and added that
LNG for up to 20 years.
equity interest in the processing
Chevron would negotiate in good
facilities, while KUFPEC will assume a
faith and would not seek an unfair
stake of 8.75 percent.
advantage with its strategic and
The first phase of Wheatstone includes
Hot Off The Press
For more information —
chevronaustralia.com
well-located facility.
the capacity to produce about 8.6
Mr Strong forecast that the Chevron
million tonnes of LNG per year and
approach would position it as a partner
a domestic gas plant.
of choice by offering a lower economic
The deals also make Wheatstone the
first LNG project in Australia to attract
large volumes of third party gas supply.
At the APPEA Conference in Darwin in
June, Chevron Australia Managing
Director Roy Krzywosinski told the
audience that the estimated 25 to 35
trillion cubic feet of discovered and
yet-to-be discovered gas in the West
Carnarvon Basin were ideally situated
for processing at Wheatstone’s
Perth
hurdle for other gas discoveries in the
West Carnarvon Basin and would
reduce Chevron’s share of costs
through scale.
Less than six months later, Chevron’s
vision is becoming a reality with the
Wheatstone Project ideally positioned
to help unlock gas discoveries in
the West Carnarvon Basin, to the
benefit of resource holders and
Western Australia.
Wheatstone
Iago
Brunello
Julimar
Barrow Island
Karratha
Thevenard
Island
Gas Plant
Onslow
D
Na am
tu pie
ra r t
lG o
as Bu
Pi nb
pe ur
lin y
e
surveillance system.
Connection to Mainland
All Eyes on Barrow
Ashburton
North
Ashburton North site.
10 | Frontier Magazine | Summer 2009/10
Frontier Magazine | Summer 2009/10 | 11
Running
Volunteering
Header-9pt
in the Community
Bold
Volunteering
RunninginHeader-9pt
the Community
Bold
Employees Giving Back
to the Community
Helping employees to directly support
Mount Lawley Childcare Centre
communities where they live and work
$5,000 to create a science, discovery
and nature centre.
– that’s the objective of Chevron Australia’s Community Grants and
Volunteer programs.
The Community Grants Program
encourages employees to nominate
organisations they are involved with
to receive a grant of up to $1,000 for
sporting/recreational organisations
or $5,000 for a charity.
Chevron Australia’s General Manager
of Policy, Government and Public
Affairs, Peter Eggleston, said the
program was set up to support the
efforts of employees who volunteered
“It’s surprising how
much rubbish you
can find on what
looks like a very
clean beach. We even found a
City to Surf bib
from five years ago.
I would definitely
do it again, it was
a fun way to get to
know other
team members.”
John Della-Franca,
Wheatstone Project team member,
City Beach Clean-Up Day.
Wanneroo Giants Baseball Club
$1,000 for junior development programs.
701 Squadron Australian Air Force Cadets
$1,500 for camp stretchers.
Chevron Australia employee, Senior
Tax Advisor Ben Giustiniano, nominated
the Better Life Foundation for a grant.
their rehabilitation or integration back
into the community.
recreational organisations.
Sultana said that people with spinal
preferred partner,” he said.
Alex Wilson, Wheatstone Project team member, Chevron Australia,
City Beach Clean-Up Day.
financial assistance, equipment and
Better Life Foundation director Charles
it strengthens our reputation as a
At City Beach we were able to remove some of the less
attractive traces of human presence and allow others to
enjoy the natural beauty."
suffered a spinal cord injury with
Australian charitable or sporting/
the communities where we operate and
"My reason for volunteering was that being new to Australia,
I wanted the chance to contribute something back to the
community and help to preserve the WA coastal environment.
compensable individuals who have
In thanking Chevron for the grant,
encouraging growth and well-being in
Annette Carter, Information Systems, Chevron Australia,
Makeover project at Balya Cancer Retreat, Gidgegannup.
The foundation assists non-
with, or championed, the cause of West
“It’s proved to be a popular means of
"I enjoyed doing something for such a worthy group. I felt humbled by the challenges faced by some other
people in our community."
cord injuries usually spent around six
to 12 months in hospital. But while it
was important to get these people
back into the community, many did not
have any form of compensation.
In the latest round of grants, 16
“Only about 25 percent have some
organisations benefited from
form of compensation,” Mr Sultana
employees who requested funding to
said. “Therefore, funding support such
help a good cause they had identified.
as a Chevron grant, becomes critical.”
Consequently, $43,400 was
distributed to a broad cross-section of
the Western Australian community.
Demonstrating the wide community
interests of Chevron Australia employees,
this is a snapshot of some of the funding
allocated in the past 12 months —
etter Life Foundation WA
B
$5,000 towards a bed, wheelchair and
computer speech system to help spinal
cord injury victims with rehabilitation.
Helping Out People Everywhere
$5,000 towards the cost of a secondhand van to provide practical help to
people in crisis.
 Chevron Australia employee Ben Giustiniano,
back left, nominated Better Life Foundation as a
recipient of a Chevron Community Grant. He is
pictured with fellow directors of the foundation,
Charles Sultana, front left, and Peter Torre right.
 Stopping for a quick break before getting back to work at the Balya Cancer Retreat, Gidgegannup, Chevron volunteers – Back row from left – Ian Paynter,
Tony Dunlop, Iain McCoy, Dwayne Augustin. Middle row from left – Simon Williams, Ken Tran, Carole Brockway,
KatieMagazine Dimario, Annette
Carter, Esther
Kmit, | 13
Frontier
| Summer
2009/10 Lauren Jenkin. Seated – Peter Kermode, Glenn Kirkaldy, Jeff Whelan.
Volunteering in the Community
Capital Stewardship and Organisational Capability (CSOC)
Volunteers
Eureka – Chevron Australia Strikes Gold!
— the Backbone of the Community
Chevron Australia recently achieved
has helped us developed a cross-company
“Achieving ‘Gold Standard’ is yet
a ‘Gold Standard’ rating for its
culture that demonstrates outstanding
another organisational capability
application of Capital Stewardship and
decision-making as a means to maximise
validation that demonstrates the
Organisational Capability (CSOC).
our return on every dollar spent.”
readiness of Chevron Australia to
Chevron has a strong belief that
development,” Chevron Australia’s
And as we come to the end of 2009,
volunteers are the backbone of
General Manager of Policy,
the number of Chevron volunteers
any community.
Government and Public Affairs,
continues to grow along with the
The assessment process is the
As part of the CSOC judging process,
It is part of our Human Energy
Peter Eggleston, said.
number of tasks undertaken.
internal benchmark used by Chevron
all six elements integral to the delivery
philosophy and we uphold that
Mr Eggleston said volunteer
“At last count, initial estimates
globally to ascertain if a business unit
of world-class capital stewardship were
However, he was quick to highlight
philosophy by encouraging our
activities in the past 12 months
indicated that by the end of 2009,
has the processes, behaviours,
assessed as ‘Gold’ —
the significant efforts, ongoing
employees to become a ‘volunteer for a
included tree planting, indoor
approximately 200 volunteers will
governance and culture to make high
Dynamic Leaders
of our Capital Stewards in delivering
Skilled Employees
high-quality results.
execute its large gas portfolio,”
Mr Krzywosinski said.
commitment and dynamic leadership
day’ each year.
painting, gardening, food drives/
have given nearly 1,000 hours of
quality decisions to support its capital
“In addition to enabling employees
collection and clean-up days.
work to the community,” he said.
investment portfolio.
to become actively involved in the
“It really is a win-win for everyone
“And importantly — they can’t wait
The ’Gold’ status confirms
community, Chevron Volunteer Days
involved – the community and
to do it all again next year!”
Chevron Australia has met the
Recognition and Accountability
help to develop team building, improve
employees,” he said.
organisation’s highest benchmark
World-class Processes and Organisation
for capital stewardship.
Technology and Partnerships.
Chevron Australia’s CSOC
Chevron Australia Managing Director,
Champion, Mark Rose, said the
Roy Krzywosinski, said the assessment
acknowledgement was especially
was particularly important given the
significant given the rapid growth and
significant and diverse range of capital
increasing complexity of operations
investments Chevron Australia would
over the past 12 months.
manage during the coming decade —
morale and support personal
Learning and Innovation
ranging from the mega-projects of
“The rating also establishes a strong
Gorgon and Wheatstone, through to
foundation upon which we need to
the exploration and appraisal program
further embed and sustain the capital
as well as projects in our Non-operated
stewardship culture,” Mr Rose said.
 Chevron Australia Information Systems team member, Jeff Whelan, gets to work at the
Balya Cancer Retreat, Gidgegannup.
 Alex Wilson, Wheatstone Project team member,
Chevron Australia, City Beach Clean-Up Day.
Part of the Community – planting, cleaning, building…
Chevron volunteers provided some
The Clontarf Foundation is a non-profit
gazebo and outdoor furniture to create
great support to Foodbank WA —
foundation set up to improve the
an area now widely used and enjoyed.
an organisation which collects and
health, employment, education and
re-distributes food to over 450
life skills of Australia’s teenaged male
welfare and charitable agencies
indigenous population.
throughout the State. They unpacked
and re-packaged food stocks for
Foodbank WA clients at the factory
in Welshpool.
They faced a different challenge at
And distance was no barrier,
Joint Venture and Information
“Part of the success can be attributed
Service groups and existing oil
to the wide-spread use of our Decision
production facilities on Barrow
Quality Spider tool (see diagram) which
and Thevenard Islands.
 Mark Rose: Championing capital stewardship
and organisational capability within
Chevron Australia.
3. Meaningful Reliable Information
4. Clear Values and Trade-Offs
• What do we know? What don’t we know?
• Do we have sufficient information to make
fact-based decisions?
• Do we know and trust our sources of information?
• What do we want?
• Do we understand our value drivers?
5
Value/Success measures?
5
• How do we make trade-offs?
with volunteers taking on another
makeover project at Balya Cancer
Retreat in Gidgegannup in May.
Westcare, an organisation which
Projects including a new herb garden
provides employment, training and
for the residents, clearing trees and
accommodation for people with a
shrubs, planting out natives, mulching
Volunteers also pitched in and helped
disability. This task included paving a
lunch areas, transplanting citrus trees,
with the Clontarf dinner program,
large lunch area for people with
and a general clean-up to provide
helping to feed students visiting
disabilities. This was achieved in record
pleasant surroundings for cancer
Perth from remote communities.
time, and also included potted plants, a
victims and their families.
2. Creative, Doable Alternatives
• What are the options or choices?
• Are our alternatives doable?
5. Logically Correct Reasoning
1
5
1
1
Decision
Quality
1
1
5
• Are we using good logic to evaluate our options,
using available information, and keeping in mind
what we want?
• Can we explain in words why our choice is the
“best” choice?
• Have we applied appropriate decision-making tools?
1
1. Appropriate Frame
•H
ave we clearly described the correct background
and context for the decision?
•W
hat’s the problem?
Do we understand the business case?
• Do key stakeholders clearly understand the frame?
6. Commitment to Action
5
5
•Are we ready to make the decision and take action?
•Are we prepared to dedicate the necessary resources
to successfully implement the decision?
 Decision Quality (DQ) Spider
14 | Frontier Magazine | Summer 2009/10
Frontier Magazine | Summer 2009/10 | 15
FOCUS Environment Competition
FOCUS Environment Competition
FOCUS, Smile – You’re a Winner!
Point: The camera.
Focus: On the environment.
Click: You have a winning combination.
  Robert Widdeson – Carine Senior High School.
 Ashley Pot – Kelmscott John Calvin School.
FOCUS Environment is an important tool in promoting
to school children the need to protect the environment.
Chevron Australia’s FOCUS
Students need to take an
presentation ceremony held at Scitech
Environment competition is proving
environmentally based photographic
recently, where 36 students and their
a winner in encouraging West
image and write an accompanying
schools accepted their prizes from
Australian school students to be
caption, to be in the contention for
Chevron Australia’s Operational
aware of the world around them and
the prize pool.
Excellence/Health, Environment
the importance of safeguarding it
for future generations.
And it’s a win-win for all involved,
with students and schools sharing in
$30, 000 worth of cash and prizes.
The competition is split into three age
groups and three subject categories —
Nature’s Moods
Plant and Animal Habitats
People and the Environment
Coordinated annually, FOCUS
Environment is a photographic
competition open to all Western
Australian school students in Years
four to 12. And, if the more than 900
entries are any indication, the sixth
annual competition is going from
strength to strength.
& Safety Manager, Rick Biddle.
Mr Biddle said FOCUS Environment
was an important tool in promoting
the need to protect the environment.
And, it was through FOCUS
Environment, that Chevron hoped
This year’s judging panels said they
favoured photographs that were sharp
and had contrast and, those that
to encourage students to be aware
of the world around them — to be
custodians of the environment.
conveyed action, emotion, drama or
humour — with supporting captions
“Chevron believes that schools
that were strong and original.
play an important role in educating
students on the need to care for our
The 2009 competition winners
were announced at an awards
environment for the benefit of future
generations,” he said.
For more information about the competition or to view the winning entries, go online —
chevronaustralia.com/community/environment/focusenvironment.aspx
16 | Frontier Magazine Summer 2009/10
Frontier Magazine Summer 2009/10 | 17
Running
Maximising
Header-9pt
Oil Production
Bold
Maximising Oil Production
The “Good Oil” on
Maximising Production
Technology and
Quality Decision Making
Chevron Australia’s oil operation on Barrow Island has proven
an enduring and successful producer of hydrocarbons for the
past 40 years.
Today, the challenge is how to maximise
improve our practices and the
Mr Klemp gave examples of
secondary recovery from the aging site.
application of new opportunities and
three recent success stories —
Technology – coupled with highquality decision making — is proving
the answer.
WA Oil Facilities Engineering Team
Leader, Peter Klemp, said a number
of recent challenges faced on
Barrow Island had been successfully
overcome by applying such thinking.
out-of-ordinary, innovative solutions
are the cornerstone of The Chevron
Way — a set of company values that
guides our decision making process,”
Mr Klemp said.
“What we’ve been doing on Barrow
Island is completely in line with that
philosophy and is driven by an internal
Polymer injection trials —
intended to redirect water
injected into the reservoir
and flush out secondary oil
 Perentie Lizard.  Crude oil tanks on the site of the Gorgon Project.
from tight rocks;
Infill drilling — to maximise well
output; and
“On the Ground” Case Studies
working process we call Capital
A water flowline replacement
“A continual push to deliver world-
Stewardship and Organisational
program – designed to replace aged
Polymer injection trials
is yet to be harvested from areas
Making the situation even more
class performance, always striving to
Capability (CSOC).”
piping and protect the environment.
Innovation at the forefront
between existing oil wells.
challenging was the fact there were
Mr Klemp explained that in polymer
“Infill drilling projects require selection
no examples of this type of work being
injection trials, polymer was pushed
of new well candidates, located between
done anywhere in the world — let alone
into the more permeable rocks where
existing wells, to maximise recovery of
in an A-class nature reserve.
oil had already been flushed out over
oil by accessing previously unswept
“It was paramount that the impact
the past 40 years, forcing water into
regions of the reservoir,” Mr Klemp said.
on the environment during the
the tighter sections to flush out
hard-to-reach oil.
“The polymer is carried by water
Setting the standard
into the higher permeability zones,”
Remediation of the water flood
he elaborated.
network – which had started showing
“This ‘tightens’ the rock and the
signs of corrosion – has also been a
hypothesis is that it causes water
great success story — improving
Environmental and
financial benefits
to divert to the ‘unswept’ regions
operational efficiency and delivering
Mr Klemp said these projects and
and pushes the oil through to the
positive outcomes for the Barrow
others undertaken by the WA Oil team
adjacent producers.”
Island environment.
displayed Chevron’s environmental
Infill drilling
“Replacing the aged carbon steel pipes
and resource stewardship, highlighting
Seeking solutions – the smart way
with new fiberglass GRE pipes was a
that a whole-of-business approach to
sensitive and difficult operation,”
problem solving could result in
Mr Klemp conceded.
enhanced economic, technical
Another challenge in maximising
production has been reaching oil that
18 | Frontier Magazine | Summer 2009/10
 T he new fibreglass pipe highway under construction.
replacement of the pipes was
Water flowline
replacement program
absolutely minimal,” he said.
Significantly, the project proved a
success — not just in environmental
terms but also financially.
and environmental efficiencies.
Frontier Magazine | Summer 2009/10 | 19
Planning for Tomorrow
It was no coincidence
that the recent visit to
Australia by the Chairman
and Chief Executive
Officer of Chevron, David
O’Reilly, came at a time
when Chevron Australia
announced another
significant gas discovery
off the Pilbara coast of
Western Australia.
UWA Partnership
Aggressive Exploration Program
Underpins Future Growth: CEO
Giving Human Energy a Boost in WA
In recent years, Chevron has
Barnett MLA and other senior State
Eric May, an Associate Professor
“Attracting the best students is
“By putting a comprehensive (gas
been working hard to pursue an
and Federal Ministers and officials.
from The University of Western Australia
the starting point for meeting the
process engineering) program in place,
aggressive exploration program off
It was also the first opportunity since
(UWA), has been appointed as the Chevron
technological challenges the future
we are not only providing the engineers
Western Australia and the news of
the Gorgon Final Investment Decision
Chair in Gas Process Engineering.
massive gas projects present.
for tomorrow; we are providing the
the prospective gas discovery in the
(FID) to visit Perth where he was special
Achilles-1 well in the Greater Gorgon
UWA was selected to join Chevron’s
guest at an employee Town Hall at the
Area is a direct result of that hard work.
global university partnership program
Perth Convention Centre.
in 2008 and the appointment of
However it does not stop there.
This provided Mr O’Reilly an
Associate Professor May is part of
In a number of media interviews,
opportunity to thank staff based in
the $6.9 million agreement between
Mr O’Reilly reinforced the fact that
Western Australia for their role in
Chevron and the University.
Chevron would be investing hundreds
building a high impact gas business
of millions of dollars in further
in Australia.
exploration over the next 18 months.
“Chevron has reached substantial
“We have a very active program,”
milestones this year on both Gorgon
Mr O’Reilly said.
FID and Wheatstone Front End
“North-west Australia is one of four
Engineering and Design Contract
priority areas of exploration for
(FEED) that represents our largest
“The appointment of Professor May
Chevron. The others are the Deepwater
LNG growth opportunity globally,”
builds on Chevron’s partnership with
Gulf of Mexico, Deepwater West Africa
Mr O’Reilly said.
UWA and is an important step in building
and the Gulf of Thailand.
“These projects are very important.”
“The Achilles discovery represented
“Once Gorgon is successfully executed,
yet another field in the Greater Gorgon
with Wheatstone coming right behind,
Area that could be put in a queue to
our oil and gas equivalent production
supply the Gorgon Project.”
here will be approaching what we have
The Achilles-1 discovery, located about
in the United States — making it one of
160 kilometres off the coast, follows gas
our biggest business units.”
discoveries announced in August at the
According to Mr O’Reilly, the outlook
Clio-2 well and the Kentish Knock-1 well.
was bright for LNG in the Australian
The Achilles exploration was completed
and Asia-Pacific regions.
by the ENSCO 7500, a dynamically
“In this kind of 25 year period that
positioned semisubmersible rig capable
we are just starting, we predict that
of drilling depths up to 10,600 metres
demand for natural gas in the Asia-
with a water depth of 2,500 metres.
Pacific region will double.
The ENSCO also recently spudded
“Combine this large and expanding
the Satyr-1 exploration well where
market to our north with a large
Chevron is hoping for another highly
resource base and secure political
“A one to two percent efficiency
Technology in Indonesia, Chulalongkorn University in
prospective result.
environment in Australia, I don’t think
improvement has a very significant
Thailand and Stanford University in California, USA.
Mr O’Reilly’s visit included meetings
we could be better positioned.
impact both financially and in terms
with the Australian Prime Minister,
“We will be living here in the
of the total energy recovered.
the Hon. Kevin Rudd MP, the Western
epicenter of economic activity
Australian Premier, the Hon. Colin
for the next 50 years.”
leaders of the engineers of the future.”
Chevron has committed $2.3 million to
establish the Chair, to fund postdoctoral
researchers, and to fund scholarships
to attract the best students into gas
process engineering.
local engineering capability to develop
 Jeff Johnson (Manager, Production, Process Engineering Division, Energy Technology Company), Eric May (Chevron Chair in Gas Process Engineering), Paul Jones (Perth Global Technology Centre
Manager), Lisa Hawker (Western Australian Alliance for Advanced Energy Solutions Manager) and
Colin Beckett (Chevron Australia University Partnership Program Executive Sponsor).
Western Australia’s world-class gas
assets,” Chevron Australia University
Partnership Program Executive Sponsor
Colin Beckett said. (Mr Beckett is better
known as Chevron Australia’s General
Manager, Greater Gorgon Area).
University Partnership Program
Chevron’s University Partnership Program was
developed in conjunction with leading universities
around the world.
Professor May said significant research
It was instigated to establish new programs,
into gas process engineering was
support faculties and provide student scholarships.
being undertaken at UWA to improve
The collaboration extends to research and technology.
the processes by which the gas
is extracted and converted into a
saleable commodity.
“In the next 10 years, there is going to
be around $100 billion spent on WA’s
gas assets,” Professor May said.
Universities are selected based on their excellent
reputation, forward thinking and result-oriented
education development.
Globally, universities Chevron’s in partnership with
include — Massachusetts Institute of Technology,
Texas A&M University, Bandung Institute of
The University of Western Australia was welcomed into
our prestigious University Partnership Program in 2008.
 Chevron Chairman and Chief Executive Officer, David J. O’Reilly, who was recently in Australia.
20 | Frontier Magazine | Summer 2009/10
Frontier Magazine | Summer 2009/10 | 21
Reducing our Carbon Footprint
Reducing our Carbon Footprint
Chevron — Helping Reduce the
Carbon Footprint Globally
“We seek new opportunities and
out-of-the-ordinary solutions.
We use our creativity to find
unexpected and practical ways to
solve problems. Our experience,
technology and perseverance
enable us to overcome challenges
and deliver value.”
The Chevron Way
 Globally, in partnership with Chevron, AC Transit, in the U.S., is testing blended Biodiesel and gas-to-liquids diesel.
Energy demand will grow substantially
by 2020 — but how do we meet this
As a company committed to
developing solutions to today’s
Referencing forecasts from the
International Energy Agency, he said
requirement and minimise greenhouse
energy issues, Chevron was proud
there were indications that while
gas emissions?
to be a gold sponsor of the conference
total energy supply was likely to grow
Addressing that universally perplexing
question, Chevron Technology
Ventures President, Desmond King,
believes scientifically advanced LNG
which was designed to examine
30 percent in the next 20 years, the
Western Australia’s future role in
lion’s share of energy sources would
the Asia-Pacific region and encourage
continue to be fossil fuels.
debate on major public policy issues.
“By 2030, non-OECD countries will
“To achieve the level scientists
per unit of energy than coal and is
Mr King said Chevron took a global
believe we need to stabilise CO2 or
therefore an important bridge to a
approach to key issues such as
greenhouse gas equivalents in the
lower carbon world.”
minimising carbon footprints.
Technology will play a leading role in
For example, Chevron operates the
minimising carbon emissions.
world’s largest geothermal energy
atmosphere, the developed world has
to drastically cut its emissions while
the developing world must moderate
its growth.
“That is a huge challenge that nobody
yet knows how to achieve.
be one of the cleanest, energy-efficient
LNG projects in the world. The carbon
projects like Gorgon are a step in the
Mr King said the Gorgon Project’s
account for almost two-thirds of the
right direction.
frontier technology was leading
world’s total energy consumption.
“However, we do know that natural gas,
will reduce its emissions by about 40
the way in satisfying the world’s
The challenge is to help these
in terms of its total carbon footprint,
percent or between 3.4 and 4 million
increasing demand for energy in
countries achieve a better quality
has under half the CO2 emissions
tonnes per annum of CO2 equivalent.
a way that reduces greenhouse
of life — but in a way that helps the
gas emissions.
planet,” Mr King said.
Chevron Technology Ventures (CTV)
acquires, tests, validates, and –
helps Chevron globally embrace
if appropriate – helps integrate those
emerging technologies to create new
technologies into the company’s
commercial opportunities, reduce
core businesses. Alternatively,
costs and improve performance.
technologies may be studied then
Mr King made his comments when
speaking at the recent inaugural
In the Zone Conference, held at the
University of Western Australia.
CTV serves as one of the company’s
“shelved” for future consideration.
most important technology “scouts”,
Chevron Technology Ventures
always searching for emerging
works through four business units:
technologies that could enhance
Venture Capital, Biofuels, Hydrogen,
Chevron’s strategies. CTV identifies,
Emerging Energy.
portfolio and continues to develop
The Gorgon Project, for example, will
dioxide injection technology involved
other renewable energy solutions,
including advanced biofuels and solar
technology as well as ways to recover
low-grade heat and pressure energy
in its operations.
 Above: The Core Greenhouse Complex
exterior at the University of California,
Davis. Chevron Technology Ventures LLC
has a joint research alliance with UC Davis
and is pursuing advanced research aimed at
converting non-food sources of biomass into
transportation fuels.
 L eft : Chevron Technology Ventures President,
Desmond King, speaking at the In the Zone
Conference, held at UWA.
 Pipelines near the Chevron geothermal power plant in Tiwi, Philippines.
22 | Frontier Magazine | Summer 2009/10
Frontier Magazine | Summer 2009/10 | 23
Putting Safety First
Gorgon Project
Chevron Australia Partners
with Contractors for Safety
With the contractor workforce growing
Golder Associates received the Safety
exponentially in the lead-up to major
Excellence Award for its active
construction works on the Gorgon Project,
participation in the execution of its Safety
engaging contractor executives in Chevron
Management Plan whilst undertaking an
Australia’s bi-annual Contractor Health,
environmental project on Barrow Island.
Environment and Safety Management
Chevron Australia’s CHESM Advisor,
(CHESM) Forum is a key component in the
Chris Best, said the forums were targeted
organisation’s commitment to achieving
at high and medium risk contractors who
incident and injury free operations.
are predominantly located out in the field.
Chevron Australia Managing Director Roy
“The forums reinforce Chevron’s
Krzywosinski addressed more than 300
commitment to safe and reliable
people at the CHESM Forum in November
operations, solicit feedback on how to
and said that achieving world-class
improve our combined safety performance
contractor safety performance meant a
and increase our collaboration with our
cultural shift for both Chevron employees
contractor partners,” Mr Best said.
and contractors.
“They also create a networking
“Our success depends on the strength
opportunity for contractors, Chevron
of our combined leadership and
employees and contract owners, which
accountability,” Mr Krzywosinski said.
is critical to establishing the collaborative
“Our goal is to achieve incident free
approach to safety throughout
operations to make sure that everyone
our operations.”
– contractor and Chevron employee alike
Worldwide, contractors comprise
– returns home safely each day.”
approximately 70 percent of Chevron’s
During the forum, Mr Krzywosinski
total workforce, so an effective contractor
presented seven safety awards to
safety management program is critical to
contracting companies that demonstrated
realising the company’s objective of
a strong commitment to safety.
world-class safety performance.
 A MC images courtesy of LandCorp.
 Peter Reeves, right, accepted on behalf of Golder
Associates a safety award presented by Chevron
Australia Managing Director, Roy Krzywosinski.
"Our goal is to
achieve incident free
operations to make
sure that everyone
– contractor and
Chevron employee
alike – returns home
safely each day."
Roy Krzywosinski,
Chevron Australia Managing Director
Safety Excellence Award
WSP Environmental — Completing environmental
Golder Associates – Implementing the Safety Management
Plan during environmental projects on Barrow Island.
projects on Barrow Island incident and injury free.
Outstanding Contractor Awards
Stop Work Authority Commitment Award
Skyworks Aviation — Commitment to the use of their
Dawn Express — Safe completion of office
fit-out projects in both QV1 and London House.
Stop Work Authority during aerial lifting operations.
Nabors Well Servicing Pty Ltd — Improved health,
environment and safety performance whilst performing
well servicing operations on Barrow Island.
John Younger and Dave Matheson, Dawn Express —
24 | Frontier Magazine | Summer 2009/10
Outstanding Crew Awards
Active safety management leadership during office
fit-out projects.
Helping to Minimise
Impact on Barrow Island
Chevron has finalised an agreement
The agreement with LandCorp will
with LandCorp – the State
provide Chevron with access to 4.4
Government’s property developer —
hectares of land for laydown, staging
to access common-user facilities and
and quarantine activities and access to
a laydown area at the Australian
a “roll on roll off” berth at the AMC.
Marine Complex (AMC) in Henderson,
This work will form part of a larger
south of Perth.
upgrade of facilities at the AMC
The facilities — currently being
common user facility by LandCorp.
developed — will play a key role in
The investment will provide a
the logistics supply chain for the
significant and lasting improvement
Gorgon Project.
to the State’s marine supply industry
Significantly, they will enable
Chevron to deliver large amounts of
equipment by sea — substantially
reducing the number of road trains
required to service the Project.
and follows Chevron’s agreement with
Mermaid Marine Australia for access
to a common-user marine supply base
located at Dampier in the north-west
of Western Australia.
This, in turn, will help Chevron
Regional Development Minister, the
Australia minimise the potential impact
Hon. Brendon Grylls MLA, expected
on Barrow Island and reduce the
the AMC service and supply base —
amount of transport on the roads
being built by Abigroup Contractors —
between Perth and the north-west.
to be completed by mid 2010.
Frontier Magazine | Summer 2009/10 | 25
News
Update
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g
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Gorgon Pro
ed, with
rst long term
ere also sign
a, and the fi
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pplier.
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Australian su
of equity in
ty Ltd was
decision on
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m
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A final in
nounced
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ed
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awar
as
the Gorgon
ed natural g
participants
cture liquefi
fa
re
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tu
n
an
m
ve
t
to
in
e Gorgon
by the jo
tanks for th
percent
te
0
5
sa
r,
en
o
d
at
n
er
co
p
and
– Chevron (O
.
(each
arrow Island
il and Shell
b
o
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o
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interest),
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on
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ard and Chie
rst phas
n of the Bo
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3
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as
AU
pany,
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of the Com
t and will su
tive Officer
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son,
developmen
g
in
e grow
, 2009. Wat
1 December
ral gas for th
3
u
e
at
n
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g
ct
in
fe
.
rn
ef
ts,
, will
Jetty bu
ralian marke
ce chairman
n LNG
currently vi
ific and Aust
is
Gorgo
ac
o
P
f
h
atire
o
w
e
si
at
A
n
er
io
, who will re
s and gen
press
avid O’Reilly
sands of job
D
u
tists im
d
o
r
th
ee
a
A
cc
te
su
ea
te

cr
lia.
board af r
ue for Austra
any and its
n
p
m
ve
re
co
e
al
ti
th
from
ding
substan
career, inclu
hed 41-year
$2.7 billion
is
D
u
U
g
A
n
ti
ed
is
d
at
.
An estim
an and CEO
the Kellogg
ars as Chairm
awarded to
ye
as
w
10
ct
a
tr
,
con
cceed
ellogg, JGC
kland will su
re Group (K
George Kir
the board.
Joint Ventu
re
chairman of
eer, procu
ce
in
g
vi
en
as
n
to
)
so
ch
t
Wat
Clough, Hat
vice presiden
in executive
anage the
ta
m
re
n
ill
io
w
ct
e
ru
H
and const
and Gas.
of Upstream
September
November
Mermaid Mar
ine Australia
was
awarded a G
orgon contra
ct to the
value of appr
oximately A
U
D$32
million for St
evedoring at
its
Dampier Sup
ply Base.
The contract
for the design
and
construction
of the 2.1 kilo
m
etre
Gorgon LNG
Jetty, worth
approximatel
y AUD$900
million,
was awarded
to the Saipe
mLeighton Con
sortium.
A Gorgon co
ntract for th
e installation
of feed gas pi
pelines unde
r the
shoreline of
Barrow Island
,
worth
approximatel
y AUD$95 m
illion,
was awarded
to AJ Lucas.
Chevron Australia
approximately 100
metres of net gas
pay in five Triassic
Mungaroo sands.
An AUD$800 milli
on contract was
awarded to Boskali
s Australia for
dredging and cons
truction of the
Pioneer Materials
Offloading Facility
for
the Gorgon Project
at Barrow Island.
, along with
Shell Developmen
The winners of Ch
t (Australia) and
evron Australia's
ExxonMobil Austr
sixth annual FOCU
alia, announced
S Environment
further drilling su
photographic and
ccess in blocks
caption competition
located in the Carn
were announced,
arvon Basin offsh
wi
th more than 900
ore
Western Australia,
entries received fro
Australia’s premier
m school students
hydrocarbon basin
around WA.
. The Achilles-1
exploration well is
located in the
Hyundai Heavy In
dustries Co.
WA-374-P permit
area approximately
was awarded an ap
proximately US$2
160 kilometres no
rth-west of Onslow
billion contract fo
r the fabrication an
in the Greater Gorg
d
on Area. The well
assembly of the ma
in LNG modules fo
was spudded on 23
r
July and was
the Gorgon Project
.
drille
d to 4,50
26 | Frontier
Magazine Summer
2009/10
0 metres,| en
countering
Chevron Australia
Chevron Australia Managing
Director Roy
Krzywosinski has welcomed the
Western
Australian government’s ‘Pilb
ara Cities’
blueprint, unveiled in Dampier
last month.
“The Government’s vision is to
As part of the plan, Karratha
and Port
Hedland will become major citie
s of the
future – specifically designed
to encourage
more people to live and settle
in the Pilbara.
Mr Krzywosinski, who joined
the Western
Australian Premier the Hon. Col
in Barnett
MLA and Regional Developmen
t and Lands
Minister Brendon Grylls MLA
and senior
business leaders for the launch
in Dampier
- said the Pilbara region was sign
ificant in
Chevron’s long-term plans.
announced the
signing of an agre
ement with
Apache Julimar Pt
y Ltd, a subsidiary
of the Apache Corp
oration and
KUFPEC Australia
(Julimar) Pty Ltd,
a subsidiary of the
Kuwait Foreign
Petroleum Explora
tion Company
k.s.c., as natural ga
s suppliers at the
Wheatstone natura
l gas hub and
twenty five percen
t (25 percent) equit
y
participants in the
project facilities.
The contract for th
e refurbishment
of a decommission
ed WA Oil storage
tank for water sto
rage during the
Gorgon Project’s
construction phas
e,
worth approximat
ely AUD$12 million
,
was awarded to Ci
meco Pty Ltd.
an d
onMobil
nts, Exx
a
ip
c
ti
r
3
e pa
AUD$4
t ventur
n of the
d its join
io
n
t
a
c
a
mony
u
r
li
t
a
ing cere
f cons
Austr
k
o
n
a
t
o
e
r
r
r
a
v
b
t
e
s
d
e
Ch
un
rated th
ecial gro
mmemo
with a sp
t
c
je
Shell co
o
r
gas p
natural
f
Gorgon
arding o
h the aw
it
Island.
w
w
d
o
r
r
r
a
a
forw
on B
sign the
e moves
d will de
s
t
a
L
h
y
p
t
D
P
E
ania
sea
tone FE
nip Oce
ts. Intec
Wheats
nd Tech
contrac
a
)
e
e
r
n
o
li
h
e
s
pip
m (off
ities and
upstrea
ring facil
e
th
a
latform.
g
s
a
uction p
d
o
r
ign
subsea g
p
e
n th
EPCO) s
will desig
pany (T
m
o
C
r
e
Pty Ltd
Pow
ery of
the deliv
Electric
r
o
y
fo
k
)
o
A
T
O
an d
0 years
nts (H
Chevron
r up to 2
greeme
A
fo
f
G
o
N
s
L
d
A) of
terest.
ark Hea
equity in
um (MTP
n
n
a landm
n
a
a
d
r
n
e
a
p
ct,
n tonnes
gas proje
4.1 millio
natural
e
n
to
s
t
Whea
from the
Chevron Supports State Governme
nt
Blueprint for Pilbara Cities
October
Holcim Australia
was awarded a
contract to the va
lue of AUD$120
million for the supp
ly of up to 210,00
0
cubic metres of co
ncrete to support
construction activ
ities for the Gorgon
Project on Barrow
Island, commencin
g
in late October 20
09.
er
b
m
e
c
e
D
“Chevron has a long standing
interest in
the Pilbara through our involvem
ent in
the North West Shelf Venture
and WA Oil
operations,” he said.
Lands
nt and
elopme MLA signs
v
e
D
l
a
lls
ion
g
on Gry
Reg
rtainin
r Brend
tion pe
Ministe
umenta
c
o
d
e
off on th .
ng.
t Bertli
lan
argare
p and M
to the p
LandCor
ur
Photo co
tesy
“Our interest in the Pilbara will
continue
to grow as we develop the Gor
gon and
Wheatstone natural gas project
s and we
look forward to working with
the State
Government to ensure our bus
iness brings
benefits to the region.”
When unveiling the plans, Pre
mier Barnett
said the framework was now
in place to
transform the region by creatin
g modern
higher density centres, suppor
ted by all
the services and facilities enjo
yed in other
Australian cities.
create
places that people choose to
settle on
a permanent basis, a place to
bring up
families with access to high stan
dards
of education, health and dive
rse
employment and career opportu
nities,”
Premier Barnett said.
Funding and resources from Sta
te,
Federal and local governmen
ts as well
as private sector investment,
would bring
a series of important infrastr
ucture and
community amenity upgrades
to key
towns in the Pilbara.
These include major revitalisati
ons of
South Hedland, Karratha, New
man, Dampier,
Tom Price and Onslow town cen
tres,
together with plans to create
new marinas
and improved waterfronts at
Port Hedland,
Dampier and possibly Onslow
.
The Pilbara Cities blueprint also
focused
on new schools and TAFEs; hos
pitals and
medical centres; leisure and ent
ertainment
facilities; shopping and retail
precincts;
employment and indigenous
enterprise
opportunities; large-scale land
releases;
and affordable living initiatives,
all
supported by significant improv
ements
and upgrades to energy, water
and
waste management services.
Frontier Magazine | Summer 2009/10 | 27
Setting the Standard Globally
Setting the Standard Globally
Tombua-Landana Achieves First Oil
Globally, Chevron is setting a new standard for developing large,
complex deepwater projects.
Striving for Excellence Globally
Project Snapshot
Angola LNG – Update
Technology
Environmental Stewardship
The 474 metre (1,554ft) compliant
Chevron will recycle Tombua-
Construction of Angola’s
piled tower is the fourth compliant
Landana’s produced water and
5.2 million-metric-ton-per-year
tower in the world, the third for
reinject it back into the reservoirs
LNG plant commenced in
Chevron worldwide and the second
– one of the first new-generation
early 2008.
“Our Tombua-Landana project is one of seven major capital
projects coming on line this year in which Chevron’s share of
investment is more than US$200 million.”
for Chevron in Angola.
facilities offshore Angola to apply
access to 38 well slots while allowing
Tombua-Landana is also designed for
gas produced from offshore
Chevron Executive Vice President of Global Upstream and Gas, George Kirkland
simultaneous production and
zero routine gas flaring: Associated
fields and help commercialise
drilling operations.
natural gas will be processed and
associated gas from oil-
stored in Block 0 until the Angola
producing operations.
The platform topside is designed
for 36,500 tones and provides
Local Content
Chevron currently employs more
Located 80 kilometres offshore
strong commitment to Angola, where
Angola in more than 360 metres
we are progressing more than a dozen
(1,200 ft) of water, the Tombua-
large capital projects.”
Landana project represents the next
major step in Chevron’s development
of Block 14.
Significantly, Angolans comprise
more than 80 percent of the
in-country workforce, and the
Tombua-Landana project, which
that crude oil production had
is Chevron’s third deepwater
started at the US$3.8 billion project,
development in Angola, successfully
was the latest success within the
engaged local suppliers to complete
acreage that has undergone an
the manufacture of key multi-million
aggressive exploration program
dollar components.
since the mid 1990s. In fact,
there have been 11 discoveries
within the acreage since the
exploration license was first
awarded in 1995.
project’s goal is for 90 percent of the
carbon dioxide that otherwise would
be released into the atmosphere
through flaring.
Chevron has a 36.4 percent
interest in the project which
will deliver 125 million standard
cubic feet per day of lean, clean
gas from startup, which is
expected in 2012.
operations workforce to be Angolan.
square kilometres. The project is
expected to achieve peak production
in 2011, with recoverable resources
tower measuring 474 metres from
for the Tombua and Landana fields
the seafloor to the top of its derrick
estimated at 350 million barrels.
than the Eiffel Tower.
the country. The Tombua-Landana
eliminating millions of pounds of
respectively, and cover over 425
Chevron is using a compliant piled
structures, standing 150 metres taller
of the company’s total workforce in
Liquefied Natural Gas project is ready,
were discovered in 1997 and 2001,
of 100,000 barrels of crude oil per day
one of the world’s largest manmade
Angola, accounting for 86 percent
is designed to process natural
The Tombua and Landana fields
Employing the latest in technology,
to produce oil from the fields. This is
than 2,900 national employees in
part of the country, the facility
and reduce discharges to the ocean
 Tombua-Landana is one of the world’s tallest manmade structures.
The September announcement
Chevron has approximately
40 major capital projects
with a net investment
of US$1 billion or more,
which includes the Gorgon,
Wheatstone and TombuaLandana projects.
Located onshore in the northern
this technology to improve recovery
Chevron, through its subsidiary
Cabinda Gulf Oil Company Ltd, has a
31 percent interest and is the operator
of the Block 14 contractor group
The President of Chevron Africa
which includes SONANGOL P&P (20
and Latin America Exploration and
percent), Eni Angola Exploration B.V.
Production Co, Ali Moshiri, said:
(20 percent), Total E & P Angola (20
“Tombua-Landana highlights our
percent) and GALP Energia (9 percent).
28 | Frontier Magazine | Summer 2009/10
Frontier Magazine | Summer 2009/10 | 29
Media
Running Header-9pt Bold
Today
world’s
Today
TodayAustralia
Australia
Australiais
is
isthe
the
theworld’s
world’s
8th
8th
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Today Australia is the world’s
Natural
Gas
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8th largest energy producer.
in New AdvertisingSo Campaign
what about tomorrow?
Chevron has launched a new advertising
Chevron is focused on developing the
Australia is currently the world’s
campaign in Australia aimed at engaging
Gorgon and Wheatstone natural gas
8th largest energy producer, but
people in today’s energy issues.
projects, investing in non-operated
there are just two operating LNG
assets, and continuing to explore for
projects in Australia. With the
and appraise Australia’s world class
development of new projects such
natural gas resources.
as Gorgon and Wheatstone,
The campaign was specifically designed
to highlight the growing importance of
major natural gas projects to Australia
and the region’s energy future.
Natural gas, an economical and efficient
energy source, is an integral part of the
“How we find, produce and use energy
transition to a cleaner energy future.
more efficiently are critical issues of
So
what
about
tomorrow?
about
tomorrow?
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whatabout
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Australia’s energy industry is poised
for a new era of growth. According
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development there’s nev Australian Petroleum Production
en it comes to energy
Wh
’re
we
d
our time,” Chevron Australia’s General
The use of natural
relative
the
. An
straliato
for Au
& Exploration Association, Australia
timegas,
been a more exciting
the lead in
ing
tak
m
Fro
Manager of Policy, Government and
it.
use
of
other
more
emissions
intensive
of
t
could become a top three global
proud to be a big par
largest single resource
alia’s
Austrcan
t, coal,
jecas
Public Affairs Peter Eggleston said. the Gofuels
such
reduce global we’reexporter of LNG.
rgon Pro
t,
ing Wheatstone Projec
to our promis
project,
greenhouse
gas emissions.
nificant
sig
a
“This campaign highlights the growing mitted to helping Australia become
com
.
rgy
ene
r
rgy, but cleane
importance of major natural gas
provider of not only ene
projects is
projects to the Australian economy and
se two new natural gas
One key benefit of the
ouse gas
enh
in helping reduce gre
as a source of cleaner energy, providing
the role they can play
r–
the
fur
n
efits go eve
diversity of supply and energy securityemissions. And their local ben
s and
job
of
s
nd
creation of thousa
economic growth, the
to Australia and the region.”
e.
com
to
for generations
continued opportunities
The integrated seven week campaign,
rgy
successfully develop ene
Having helped Australia
ard
tow
k
loo
consisting of television, print and
we know that as we
for the last 50 years,
aner
cle
er,
ght
online advertising, is running through tomorrow we can help build a stronger, bri
the region.
until December. The campaign is
future for Australia and
being executed in Perth, regional
Western Australia, Canberra, Sydney
y.y.
erg
erg
n nEnEn
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ma
HuHu
ofof
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wer of Human Energy.
po
the
is
is
Th
man Energy.
This is the power of Hu
and Melbourne, as well as in selected
national media.
The campaign recognises the value of
Chevron has partnered with the people
of Australia for over 50 years and will
continue to do so for generations to come.
“It communicates Chevron’s long history in
Australia and our commitment to applying
our ‘Human Energy’ to responsibly
developing the country’s natural gas
resources to help the economy grow
and meet long-term demand for cleaner
To view the new advertisements, go online
energy,” Mr Eggleston said.
chevronaustralia.com/aboutchevronaustralia/advertising.aspx
chevronaustralia.com
30 | Frontier Magazine | Summer 2009/10
CHEVRON,
CHEVRON,
the
the
CHEVRON
CHEVRON
HALLMARK,
HALLMARK,
and
and
HUMAN
HUMAN
ENERGY
ENERGY
CHEVRON,
the
CHEVRON
HALLMARK,
and HUMAN
ENERGY
are
are
registered
registered
trademarks
trademarks
ofof
Chevron
Chevron
Intellectual
Intellectual
Property
Property
are
registered
trademarks
of
Chevron
Intellectual
Property
CHEVRON,
the
CHEVRON
HALLMARK,
and
HUMAN
LLC.
LLC.
©2009
©2009
Chevron
Chevron
Corporation.
Corporation.
AllAll
rights
rights
reserved.
reserved.ENERGY
LLC.
©2009 Chevron
Corporation.
All Intellectual
rights reserved.
are registered
trademarks
of Chevron
Property
LLC. ©2009 Chevron Corporation. All rights reserved.
CHEVRON, the CHEVRON HALLMARK, and HUMAN ENERGY
are registered trademarks of Chevron Intellectual Property
LLC. ©2009 Chevron Corporation. All rights reserved.
partnerships by acknowledging that
chevronaustralia.com
chevronaustralia.com
chevronaustralia.com
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Frontier Magazine | Summer 2009/10 | 31
Chevron Australia Pty Ltd
ABN 29 086 197 757
250 St Georges Terrace
Perth Western Australia
6000 Australia
Tel +61 (8) 9216 4000
Fax +61 (8) 9216 4444
Email: ask@chevron.com
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