U.S. OIL giant Chevron has started its biggest ever exploration campaign off Australia's northwest coast.
According to the company, the drilling, costing "hundreds of millions of dollars," would include as many as 10 exploration and appraisal wells this year.
The company said the drilling aimed to find more gas to supply the planned Gorgon and Wheatstone LNG projects.
Australia's northwest ranks among Chevron's four highest-priority exploration regions worldwide.
According to Western Australia’s Premier Colin Barnett, the Gorgon venture could cost $50 billion, making it the nation's biggest resource project.
Chevron said on January 29 2009 it was maintaining worldwide capital spending at about $US22.8billion (AUD$32.7 billion) this year.
The company said about $US2 billion would go on exploration, mostly in the four priority areas.
Chevron said that the company and its Gorgon partners, Exxon and Royal Dutch Shell, expected to give the go-ahead in the second half to build the delayed project.
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