Bidness ETC - Chevron Completes Largest Seismic Survey In Australia As It Doles Out Gulf Of Mexico Contract

Study to decide where to drill for oil in South Australia; French contractor, Technip, to install new equipment in deep U.S. waters.

Chevron Corporation (NYSE:CVX) has completed its seismic survey, as it figures out where to drill for oil located in the untapped corner of South Australia. The survey was carried out by Norway’s TGS Nopec Geophysical Co. covered an area of approximately more than 22000 km square in the Great Australian Bight.

The area that is currently to be explored is a deepwater basin region that is dubbed by the UK energy giant, BP, as probably the last unexplored frontier on Earth. Chevron has won the rights to the acreage in 2013 and has committed itself to invest less than $390 million for exploration.

Ion Geophysical is planning to start its seismic program around November this year in the areas bordering South Australia, Tasmania, and Victoria, once it secures the green light from the nation’s offshore regulator.

BP completed its own seismic activity three years ago and looks all set to commence drilling by October next year. It is trying to hook up with local partners to save money, in turn, making their operations even more efficient.

Meanwhile, Chevron has handed out a contract to the French company, Technip, to have the existing installation of equipment removed and replace it with an updated version in the deep-water location in the Gulf of Mexico. Technip has confirmed the news that it has received the contract.

The terms of the agreement, which does not disclose the sum that will be invested, indicate that the French company will install new equipment to support the floating production system in the deep waters of the Mississippi River. Through its operations coordinated from its Houston office, Technip will use the Deep Blue vessel to help lay down the foundations for Chevron’s offshore oil operations.

In other news, as part of its strong push in the LNG sector, the US oil major has said that it will build six new LNG ships out of the 13 ships that are planned to be built, which the company says, will be the largest in the company’s corporate history.

Samsung Heavy Industries Shipyard in South Korea has been given the contract to build those super tanker ships. The company currently has its presence in nearly all continents for its LNG business and plans to boost its portfolio to approximately 40% from 35% in the next five years.

Chevron’s stock price ended the day at $100.12, a decline of more than 1% from the previous day.