Chevron and Chubu Electric Sign Wheatstone LNG Agreements

Thu Mar 28, 2013 12:03pm EDT

* Reuters is not responsible for the content in this press release.

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130328:nBw285888a

Agreements to supply 1 million tons annually from Wheatstone Project for 20
years
SAN RAMON, Calif.--(Business Wire)--
Chevron Corporation (NYSE: CVX) today announced that its Australian subsidiaries
have signed binding long-term Sales and Purchase Agreements (SPAs) with Chubu
Electric Power Company Inc. (Chubu) for liquefied natural gas (LNG) from the
Wheatstone Project in Western Australia. 

Under the agreements Chevron, together with Apache Energy and Kuwait Foreign
Petroleum Exploration Company, will supply Chubu with 1 million tons per annum
(MTPA) of LNG for up to 20 years. 

Joe Geagea, president, Chevron Gas and Midstream, said, "Chubu, one of the
world's leading LNG customers, is now a partner and customer of the
Chevron-operated Gorgon Project. We are pleased to expand the strong partnership
between our two companies with these SPAs for Wheatstone LNG." 

Roy Krzywosinski, managing director, Chevron Australia, said, "More than 80
percent of Chevron's equity LNG from Wheatstone is covered under long-term
off-take agreements with customers in Asia. The agreements demonstrate that
Wheatstone is well-placed geographically to meet the Asia Pacific region's
growing demand for a safe, reliable and cleaner-burning source of energy." 

The Chevron-operated Wheatstone Project is located at Ashburton North, 7.5 miles
(12 kilometres) west of Onslow in Western Australia. The project will consist of
two LNG trains with a combined capacity of 8.9 million tons per annum and a
domestic gas plant. 

The Wheatstone Project is a joint venture between Australian subsidiaries of
Chevron (64.14%), Apache Energy (13%), Kuwait Foreign Petroleum Exploration
Company (7%), Shell (6.4%), and Kyushu Electric Power Company (1.46%), together
with PE Wheatstone Pty Ltd. (part owned by Tokyo Electric Power Company, 8%). 

Chevron also holds an 80.17 percent equity interest in the Wheatstone and Iago
fields that provide 80% of the feedgas to the Wheatstone Project. The partners
in the fields are Australian subsidiaries of Shell (8%) and Kyushu Electric
Power Company (1.83%) together with PE Wheatstone Pty Ltd (part owned by Tokyo
Electric Power Company, 10%). 

Chevron is one of the world`s leading integrated energy companies, with
subsidiaries that conduct business worldwide. The company is involved in
virtually every facet of the energy industry. Chevron explores for, produces and
transports crude oil and natural gas; refines, markets and distributes
transportation fuels and lubricants; manufactures and sells petrochemical
products; generates power and produces geothermal energy; provides energy
efficiency solutions; and develops the energy resources of the future, including
biofuels. Chevron is based in San Ramon, Calif. More information about Chevron
is available at www.chevron.com. 

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of
"Safe Harbor" Provisions of the Private Securities Litigation Reform Act of
1995.

Some of the items discussed in this press release are forward-looking statements
about Chevron's activities in Australia. Words such as "anticipates," "expects,"
"intends," "plans," "targets," "forecasts," "projects," "believes," "seeks,"
"schedules," "estimates," "budgets," "outlook" and similar expressions are
intended to identify such forward-looking statements. The statements are based
upon management's current expectations, estimates and projections; are not
guarantees of future performance; and are subject to certain risks,
uncertainties and other factors, many of which are beyond the company's control
and are difficult to predict. Among the important factors that could cause
actual results to differ materially from those in the forward-looking statements
are changes in prices of, demand for and supply of crude oil and natural gas;
actions of competitors; the inability or failure of the company`s joint-venture
partners to fund their share of operations and development activities; the
potential failure to achieve expected net production from existing and future
crude oil and natural gas development projects; potential delays in the
development, construction or start-up of planned projects; the potential
disruption or interruption of the company`s net production or manufacturing
facilities or delivery/transportation networks due to war, accidents, political
events, civil unrest, or severe weather; government-mandated sales,
divestitures, recapitalizations, industry-specific taxes and changes in fiscal
terms or restrictions on scope of company operations; foreign currency movements
compared with the U.S. dollar; and general economic and political conditions.
The reader should not place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. Unless legally required,
Chevron undertakes no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or otherwise.

Chevron Corporation
Alex Yelland, Singapore, +65 9720 2560
Kurt Glaubitz, San Ramon, +1-925-790-6928 



Copyright Business Wire 2013