Chevron cracks the whip

CHEVRON has warned that productivity at its Gorgon project remains a key issue if the $43 billion project is to meet its set timelines and budgets.
Chevron cracks the whip Chevron cracks the whip Chevron cracks the whip Chevron cracks the whip Chevron cracks the whip

A report in The Australian Financial Review quoted Chevron Greater Gorgon area general manager Colin Beckett as saying any sub-standard performance in training, skills and productivity would put the late 2014 start-up date at risk.

Productivity has been a major issue at various resources projects, with major cost blow-outs at projects including Woodside's Pluto LNG venture, Exxon's Kipper-Turrum and Citic Pacific's Sino Iron project.

"Some projects we know about have had poor productivity as they've tried to close them out," Beckett told AFR.

"Our task is to make sure we get the expected productivity," he said.

Beckett also signalled a price tag "north of $10 billion" for the next phase of the LNG project, which was expected to move into the main engineering and design phase by the end of the year.

Environmental approval to add a fourth train is likely by the end of next year, with a final investment decision expected in 2014.

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