The FINANCIAL -- Chevron Corporation announced that its Australian subsidiary has reached an agreement to exchange its holdings in the Browse development for Shell Development Pty Ltd's interests in the Clio and Acme fields1 in the Carnarvon Basin offshore northwest Australia.

Under the agreement, subject to regulatory and other approvals, Chevron will exchange its 16.7 percent interest in the East Browse titles2 and 20 percent interest in the West Browse titles3, 4 for Shell's 33.3 percent interests in the WA-205-P and WA-42-R blocks. As Chevron Corporation reported, this will give Chevron a 100 percent interest in WA-205-P and WA-42-R. Shell will also make a $450 million cash payment to Chevron.

George Kirkland, vice chairman, Chevron Corporation, said: "Acquiring the remaining interests in WA-205-P and WA-42-R fits strategically with our long-term plans to grow our Wheatstone area resource base, and create expansion opportunities for the Wheatstone Project."

Melody Meyer, president, Chevron Asia Pacific Exploration and Production, said: "Australia is a key focus area for Chevron, evidenced by our investment and development of the Gorgon and Wheatstone projects, and strong exploration and appraisal program. Consolidating our Carnarvon Basin position furthers our progress towards becoming a leading liquefied natural and domestic gas producer in Australia and Asia-Pacific."

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