Chevron's Gorgon Gas Project Under Review

The $15 billion Gorgon gas project off the coast of Western Australia is under review following a string of cost blowouts in major oil and gas projects worldwide.

Chevron chief executive David O'Reilly told analysts in New York that the company was having another look at Gorgon, the most expensive project in its pipeline.

"Gorgon is going through a very in-depth evaluation right now to see if we can improve the economics," he said.

Chevron has already suspended work on the Hebron oil project in Canada because of rising costs and its inability to agree on fiscal terms with the local government.