Chevron Corporation‘s (NYSE:CVX) Chevron Australia and Gorgon JV partners have approved the Final Investment Decision for the Gorgon Stage 3 project off northwest Western Australia.
• Chevron stock is holding steady today. What’s ahead for CVX stock?
Details
The AU$3 billion (approximately $2 billion) project will link the Geryon and Eurytion gas fields to existing subsea infrastructure and Barrow Island processing facilities.
Also Read: TotalEnergies Sells 40% Stake In Nigeria Offshore Blocks To Chevron
As the first planned subsea tieback under Gorgon's original development plan, Stage 3 will add three subsea manifolds, a 35-kilometre production flowline and other supporting infrastructure.
The plan also calls for drilling six wells across the Geryon and Eurytion fields, located roughly 100 kilometers northwest of Barrow Island in waters about 1,300 meters deep.
Notably, Gorgon can supply up to 300 terajoules of gas per day to the Western Australian market and produce 15.6 million tonnes of LNG annually.
Management Commentary
Chevron Australia President Balaji Krishnamurthy said the project will help sustain output at Gorgon, supporting long-term domestic gas supply for Western Australian homes and businesses as well as LNG exports to customers across Asia.
Krishnamurthy added, "With the development of the Geryon and Eurytion fields — to join the existing Gorgon and Jansz-Io fields in providing gas supply for the processing facilities — we can continue providing the reliable energy the world needs, maintaining thousands of highly skilled jobs in Australia, supporting regional WA communities and contributing to government revenue."
Recent Outlook Update
On Wednesday, the oil and gas giant disclosed that it expects an organic capital expenditure range of $18–$19 billion for consolidated subsidiaries (capex) in 2026.
The company sees upstream investments at around $17 billion. This includes nearly $6 billion for U.S. shale and tight plays in the Permian, DJ and Bakken basins, supporting U.S. production of over two million barrels of oil equivalent per day.
CVX Price Action: Chevron shares are down 0.51% at $152.48 at publication on Friday.
Read Next:
