Martyn Wingrove, Lloyds List
Published: Aug 17, 2007
CHEVRON’s Greater Gorgon liquefied natural gas project in Western Australia may be delayed or even postponed because development costs could be too high, writes Martyn Wingrove.
Chevron’s partner in the project, US major ExxonMobil, is reported to have said the project plan, which involves building a double train plant on Barrow Island off the Australian coast, is too expensive.
The two US oil companies and partner Royal Dutch Shell are thought to be considering moving the plant to an onshore location.
Any change in their plans will delay the project and ultimately LNG exports from one of Australia’s largest future gas projects.
Analysts at investment bank Credit Suisse said ExxonMobil’s chief executive Rex Tillerson told them the partners were not willing to move ahead with the Greater Gorgon project at present cost levels. ‘All aspects of Gorgon are being looked at, including moving the site from Barrow Island to onshore,’ said Credit Suisse analysts Mark Flannery and Edward Westlake in a note to clients.
Mr Tillerson spoke to analysts for 90 minutes in New York and commented on other projects and issues including interest in Arctic exploration, project costs on the giant Kashagan oil project in Kazakhstan and his company’s recent exit from Venezuela.
‘We may know more by the end of the year, but all partners are agreed it cannot go ahead at current cost levels,’ said the analysts.
ExxonMobil, Chevron and Shell are reviewing the costs on what was a A$11bn ($9.2bn) project that also involved developing several offshore gas fields in shallow and deep waters with subsea wells tied back to the Barrow Island plant.
It is thought the partners are also considering increasing the size of the plant by adding a third train to boost capacity from 10m tonnes annual capacity to 15m tonnes. This would be possible if an onshore location was chosen.
‘In Greater Gorgon we have a 25% interest and our Janz field is part of the whole Gorgon project,’ said an ExxonMobil spokesman. ‘The Credit Suisse report has inaccuracies and speculation that we will not comment on.’
Construction costs for both import and export LNG facilities have doubled in price in the past four years and oilfield costs have massively increased as contractors have capitalised on strong demand and high energy prices.
As one Australian LNG project is delayed another is boosted by a successful offshore well.
Development of the deepwater Scarborough gas field, operated by ExxonMobil, has moved a step forward after BHP Billiton discovered a new gas resource close by with the Thebe exploration well.
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Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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