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Chevron Teams Up With Woodside to Develop Clio-Acme Field

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Reportedly, Chevron Corporation (CVX - Free Report) is ramping up its efforts to unleash a revolution in Australia’s LNG sector by seeking greater collaboration from the industry players. The company intends to develop its Clio-Acme field by sharing infrastructure system with Woodside Petroleum Limited.

The field has a domestic gas supply capacity of 50 LNG cargoes a year and 70 terajoules per day. Woodside plans to construct a pipeline, connecting its remote Scarborough field to the Pluto LNG plant, adjoining the Karratha Gas Plant. Chevron views such a collaboration to be essential for the future development of offshore resources in an efficient manner, as it would result in cost effectiveness and minimum duplication of its infrastructure.

A few months back, Chevron Australia Managing Director proposed a pipeline system, Trans Carnarvon Basin Trunkline, to unlock the future value in the Carnarvon Basin, offshore Western Australia. The multi-user offshore pipeline underpinned by shared offshore infrastructure would serve as the interconnected gas gathering system, spanning the width of the Carnarvon Basin.

The infrastructure projects are likely to spur the development of various fields that are currently not much economically viable and thereby uplift the resource potential of Australia, leading to greater volumes of gas to the shore, in turn boosting local economies and Australian government revenues. The shared infrastructure is likely to mitigate the duplication of pipeline infrastructure and hence, would keep in control the industry’s environmental footprint.

Zacks Rank and Key Picks

Chevron currently carries a Zacks Rank #3 (Hold).

Some better-ranked players in the same sector are Petróleo Brasileiro S.A. (PBR - Free Report) or Petrobras SA, Helix Energy Solutions Group, Inc. (HLX - Free Report) and TC Pipelines, LP , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Petrobras is the largest integrated energy firm in Brazil and one of the major players in Latin America. It pulled off an average positive earnings surprise of 10.4% in the last four quarters.

Helix Energy offers specialty services to the offshore energy industry. The company delivered an average positive earnings surprise of 66.7% in the trailing four quarters.

TC Pipelines purchases, owns and actively participates in the management of U.S.-based natural gas pipelines and related assets. The company delivered an average positive earnings surprise of 3.7% in the last four quarters.

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