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GORGON PROJECT

LIQUEFIED NATURAL GAS (LNG) PROCESSING FACILITY

PS.12/2008/H-318618 1

CLIENT:

Chevron Australia (Operator)

LOCATION:

Barrow Island, WesternAustralia

START:

January 15, 2005

COMPLETION:

Ongoing

Barrow Island

PROJECT DESCRIPTION:

The Gorgon project plans to develop the Greater Gorgon gasfields, locatedabout 130 km off the northwest coast of Western Australia. The Greater

Gorgon gas fields contain some 40 trillion cubic feet (Tcf) of gas, the

nation's largest gas resource.

The development proposal includes:

A gas processing facility on Barrow Island consisting of three 5-million-

tonnes per-annum (mtpa) LNG trains and carbon dioxide injection

facilities and a domestic gas phase of up to 300 terajoules per day

(TJ/d).

Subsea development of the Gorgon and Jansz gas fields involving subsea pipelines from the fields to Barrow Island.

LNG shipping facilities to transport products to international markets.

The process system will receive hydrocarbons from the Greater Gorgon Gas Fields (Gorgon and Jansz) and produce LNG

for export, with the ability for domestic gas to be fed into the existing mainland distribution network. The upstream

wellhead collection facilities from the Greater Gorgon Gas fields will be situated approximately 90 km west of Barrow

Island. The process facility is being designed to produce 15 mtpa of LNG and 300 TJ/d of domestic gas (DOMGAS) per

day. Carbon dioxide from the incoming gas stream will be stripped out in the process facility and compressed for re-

injection into saline aquifers deep beneath Barrow Island.

The project was initially approved for a 2 x 5-mtpa train development. Chevron Australia is currently working with

government to secure approvals for the revised project scope which includes an additional 5 mtpa train. The third trainwill be built within the 300-hectare development site allocated in the Barrow Island Act, representing just 1.3 percent of

Barrow Island.

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GORGON PROJECT

LIQUEFIED NATURAL GAS (LNG) PROCESSING FACILITY

PS.12/2008/H-318618 2

The Gorgon project is being pursued by the Australian subsidiaries of three leading international energy companies:

Chevron, ExxonMobil and Shell. Chevron is operator of the project with a 50 percent interest, with ExxonMobil and Shell

each holding 25 percent.

SCOPE OF SERVICES:

The Kellogg Joint VentureGorgon (KJV), which comprises Hatch,

Kellogg Brown and Root, JGC Corporation of Japan and Clough Projects

Australia was selected to perform pre-front-end engineering-design

(FEED) work for the downstream elements of the Gorgon project in

January 2005. The KJV project directorate and management office is

based in Perth, Western Australia and conducted the construction

preparatory engineering, civil/marine engineering and procurement

work in Perth. Other engineering work was produced in Houston,

Texas. Hatch led the effective construction execution work in Perth

and participated in all other areas of the pre-FEED.

As the Gorgon projects downstream contractor, KJV expanded its team as project activity ramped up in 2008 to continue

FEED for the downstream processing facilities and the liquefied natural gas (LNG) plant including export facilities to be

located on Barrow Island.

In September 2008, the KJV was awarded a Work Authorisation by Chevron Australia Pty Ltd for an estimated US$300

million to continue FEED to now include three, 5 mtpa LNG trains and a 300-terajoule-per-day domestic gas plant.

During FEED, KJV is operating two offices, an LNG design office in London, England, and a procurement and construction

management office in Perth, Australia.

PROJECT HIGHLIGHTS:

The Gorgon project will be Australias largest resources project.

Additional funding of A$1 billion was allocated to the project in 2008 to undertake key activities leading to a final

investment decision on the Gorgon project.

In 2008 and into 2009, approvals will be sought for the additional train, completion of related FEED work, obtaining

bids for key equipment and services and continuing construction execution planning.

The Gorgon project will be one of the most greenhouse-gas-efficient LNG developments in the world, producing 0.35

tonnes of greenhouse gas per tonne of LNG shipped.

The project will be developed within the 300-hectare development envelope agreed for Barrow Island--this represents

1.3 percent of the islands land mass.

The Gorgon project has been deliberately sited to avoid areas of particular conservation significance.

PROJECT SAFETY:

Chevron, ExxonMobil and Shell are leading companies in the global oil and gas industry with proven technical and

management skills for safe, efficient and environmentally responsible development.