. I have been following this board for a few weeks now. When a poster flagged massive problems with Gorgon - he/she was dumbed down and made out to be an idiot. I hear there is huge problems - they could barely export the first cargo and the plant is shut down for god knows how long. There was total mis maganement of the commissioning - and things were hurried - where did " there is always time to do it right " disappear??????? Pathetic pathetic pathetic the self serving and facetious demeanour of the management - they say one thing - bur it is only for the infantry - the generals can do whatever they want!!!!!!!!
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The agreement is to inject 80% of the produced CO2 on a running 5-year basis. It does not specify what happens if we don't meet that but implies we could lose our license to operate as we are in breach of the contract. So the fine was completely negotiable and should have been zero as we did not technically begin the full operations until CO2 was up and running. Lawyers knew this but management elected to pay a fine for appearance purposes. Exxon never would have paid if they were operator and you can just imagine their reaction to Chevron handing them their 25% share of the fine bill.
This post started in 2016? Following short of the co2 target was a given when injection startup was delayed for more than a year after the start of production. This ho-e was dug years ago: the bill just became due now.
Gorgon will make that fine back in just a year or two.
Just announced we will pay almost $200 million in carbon fines. What a fiasco. MH really dropped the ball.
“Ya’ll got any more of them carbon credits?”
November is the next deadline, They won’t make this either due to sand problems. The entire injection technical team should be fired. The govt may shut in Gorgon until this is fixed.
Gorgon should be as easy as CCS gets.
The capture of CO2 from the reservoir gas is needed for all LNG plants so was not an additional cost at Gorgon. In addition, the injection site was only a few kilometres away; the geology was known from decades of oil production; and the project backed by three oil and gas giants with prodigious technical and financial resources: Chevron, ExxonMobil and Shell.
Trump would have never let this happen
I work on Gorgon (expat) and agree it was total mismanagement from the start ... Exxon and shell also threw there two cents in no one had a decent execution plan an or stuck to it. big calls were made constantly on limited knowledge, to save 5 minutes they got months of re work. You normally know how good your commissioning job was around 12 months after start up. We didn't even truely get to start up. Make it clean , dry, tight and you stand a chance ( basic industry practice) We flushed f--- all, no pipe blows and we sacked the group doing tightness testing....... All the managers on this project Exxon , shell , Chevron should hang there heads in shame. the workers knew. Like some one said before first world slogans third class delivery. The senior site managers totally drove the wrong behaviours from the start
$100 million here, half a billion there... does it really matter when you have already sunk $54 billion into this POS?
ALNG is not "Bechtel Tech". It is a Conoco -Phillips design, and it was not an underground pipe. It was a relief pipe that was not sized correctly to handle the flow from a fully opened valve.
There's always time to do it right. Unless you're working with Australians because you have to hurry those lazy f---ers along or else they will spend an extra 20 billion dollars before you realise it.
I believe ALNG is Bechtel tech (like Wheatstone). Gorgon is KBR/JGC tech. Gorgon is a process issue. ALNG was catastrophic failure of an underground line if I remember correctly.
Is this the same piece of equipment that failed in Angola?
"I don't believe in clairvoyants." ??? /Who wrote that? You obviously don't believe in English either. When you learn it, please post something intelligible. No, you don't have 20/20 hindsight or foresight!!!!! You are simply an IDIOT !!!! ROTFLMMFAOBOAY!!!!
"World class slogans, third class delivery". - Pure Gold, @1qyc. Another one for the Chevron Layoff Site Hall of Fame.
Yada yada yada - execute with excellence - yada yada - deliver to plan - yada yada yada - we lead behaviours - yada yada - lean sigma - yada - do it safely or not at all - yada yada yada - we are sooooooo busy as you can see. "World class" slogans third class delivery
Gorgon, ALNG, Big Foot, EGTL
Don't forget the $ spent buying into Kitimat, FEEDs for Rosebank, all the shelved SASBU projects which need $100 oil to be economical, Mad Dog 2 NOJV, etc.
Not surprised and no one else should be. The start up was pushed so Watson could say it happened at analyst day. That's the only reason it started up at all. The issues were known about prior to start up.
C'mon guys, don't act like CVX is the only institution today that is f*cked. Every major corporation, public sector organization, and university is run by complete idiots. Unemployement has allowed me to catch up in my study of philosophy. Oswald Spengler accurately modeled the rise and fall of every major civilization in recorded history according to a model that is similar to the lifecycle of any organism. "Spring" = "Birth", "Summer" = "Maturity", "Autumn" = "Elderhood", and "Winter" = "Death." We are leaving the "Autumn" season where liberalism, democracy, and the rule of the people is the order of the day. This phase always ends because democracy forces equality (which is really just reducing everyone, and everything to the lowest common denominator), which leads to incompetence, and crisis. From this crisis rises an emperor who institutes a hierarchy of competence and rules society with an iron fist. So in comparison to the collapse of Western Civilization, the fact that Gorgon is shot isn't such a big deal, right? Right?
Gorgon, ALNG, Big Foot, EGTL - can anybody add up the $$ these gems have cost us so far? How much money have they earned?
Obama and Clinton could have doen a better PM job for Gorgon than Chevron.
Blame it on Obama and Clinton,,,their destroying the oil companies,,,
Yes, and topic #2 on the agenda was how many more employees still need to be let go to stubbornly continue to pay the damn dividend at that high yield.
Our partners in Gorgon are now talking negligence. Here come the lawsuits. This Gorgon and Wheatstone thing is the albatross around Chevron's neck. I bet this was topic #1 this week at the BOD meeting at 1400. The color of the entourage vehicles was appropriate for the occasion (black).
Ha! It's probably because hot air heads like Lauren are there.
It's more than just propane! The multi-component refrigerant (MCR) process may have to be REINGINEERD!!!!! The words, scrap, start over, have been used.
I just got back from Australia. It is a really bad time to be at Chevron. The engineering review of the MCR was flawed from the begininning and it should be a while before we can go back on line. At current state, a 50% reducttion in output is expected because of design flaws.
Exxon and Shell are now talking gross negligence. Not sure if it can get much worse?
You know something, @tgp? I don't believe in clairvoyants. What we have here is a runaway freight train that everyone paying attention saw coming. Take your 20/20 hindsight crap elsewhere. Jackass.
Where does it end, @jvj? Sadly, it ends with the worse outcome... The loss of your job. What bigger price to pay for an employee.
You know, disgusted or not, hindsight is 20-20. Don't pretend that people on this board are clairvoyant.
Sheeesh - this is terrible - as an employee and as a shareholder it makes me sick. How many more f ups do we have to go through with this joke of a LT. Bigfoot Angola gorgon Wheatstone - where does it end - really - I have to sell my stock and look for another job.
Correct, @ies. Exactly what happened at Gorgon was said before it happened. There were known problems with the propane cooling system ahead of the first LNG shipment. They proceeded anyway to please Wall Street with full intentions of shutting it down to make major repairs. We read in the news wires yesterday that repairs are likely to hit the project for around $100 million. They amounted this setback to "teething problems".
if I recall, they said exactly this would happen. They would make the milestone to satisfy Wall Street and shut the place back down, just like ALNG.
board seems pretty accurate