Chevron Says Some Parts of Australia LNG Project Need to Improve
By James Paton
Chevron Corp. (CVX), operator of the A$52 billion ($49 billion) Gorgon natural gas venture in Australia, said some “uncertainties” remain in the construction of the project after its budget last year jumped 21 percent.
Some areas of construction “still need to improve” after Gorgon costs surged on gains in the Australian dollar, higher labor expenses and weather delays, Chief Financial Officer Pat Yarrington said on a Nov. 1 call with analysts, according to a transcript. Labor productivity at Gorgon, located on Barrow Island off northwest Australia, has increased, she said.
Chevron, the second-largest U.S. oil producer by market value, is completing its budget for the year and will inform investors of any potential cost changes, she said. Royal Dutch Shell Plc and Exxon Mobil Corp. are partners in Gorgon, which Yarrington said during the call is more than 70 percent complete.
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