By San Francisco Business Times

Chevron Corp. has made a deepwater natural gas discovery in a Chevron-operated block in the Carnarvon Basin offshore Western Australia.

San Ramon-based Chevron (NYSE: CVX) said the well is located about 90 miles northwest of Onslow, situated in 3,186 feet of water and drilled to a depth of 14,137 feet.

It is the third consecutive discovery on the Clio structure.

"Western Australia will play a key role in our long-term plans to build a leading natural gas business to supply energy safely and reliably to Australia and the Asia-Pacific," said Jim Blackwell, president of Chevron Asia Pacific Exploration and Production Co. "We expect this discovery, together with our previous discoveries in this permit area, to underpin expansion opportunities at the Wheatstone liquefied natural gas hub."

Chevron through its Australian subsidiary holds a combined 66.66 percent interest, with Shell Development (Australia) holding the remainder. Additional work will be needed to determine the extent of the discovery.

Copyright 2010 American City Business Journals

http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2010/07/05/daily8.html?ana=thestreet

Copyright bizjournals.com 2010

More from Commodities

Watch This If You're Wondering How Much Gold to Have and When to Sell

Watch This If You're Wondering How Much Gold to Have and When to Sell

How Can Gold Continue This Upward Momentum?

How Can Gold Continue This Upward Momentum?

Week Ahead: Investors Keep Economy in Check as Trade, North Korea Talks in Limbo

Week Ahead: Investors Keep Economy in Check as Trade, North Korea Talks in Limbo

Oil Rally Steadies Even as Potential Supply Disruptions Persist

Oil Rally Steadies Even as Potential Supply Disruptions Persist

The Outlook for Gold Prices Looks Awful Even With 10-Year Yields Above 3%

The Outlook for Gold Prices Looks Awful Even With 10-Year Yields Above 3%