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Chevron, the second-largest US energy company, overnight announced it will spend $US26 billion ($A26.6 billion) in 2011 in investments, and oil and gas exploration and production.
The West Australian Chevron, the second-largest US energy company, overnight announced it will spend $US26 billion ($A26.6 billion) in 2011 in investments, and oil and gas exploration and production.

Chevron has made two more offshore natural gas discoveries off the State's North West coast that could drive the expansion of its two LNG projects in the area.

The discoveries at Pinhoe-1 and Arnhem-1 are located further away from the coast than the oil and gas giant's Gorgon and Wheatstone LNG at Barrow Island and Onslow respectively.

The Pinhoe-1 exploration discovery well encountered about 60 metres (197 feet) of net gas pay.

The Arnhem-1 exploration discovery well confirmed about 45.5 metres (149 feet) of pay.

Chevron has now announced 19 gas discoveries in Australia since mid-2009, Chevron Asia Pacific Exploration and Production Company president Melody Meyer said.

"These discoveries in the Exmouth area are significant as they are located farther out from other discoveries in the greater Gorgon and Wheatstone development in the Carnarvon basin and indicates development potential in the broader region," she said in a statement.

Chevron Australia is the operator and has a 50 per cent interest in the two permit areas, with Shell the other stakeholder.

More than $160 billion gas already been committed to Australian LNG projects - representing more than half of resources investment - but has been marred by cost blow-outs including a recent $9 billion hike in Gorgon's development cost to $52 billion.