Chevron says it has cut a deal with Korea Gas Corporation for the sale of gas and an equity stake in the massive Wheatstone project located about 90 miles off Carnarvon Basin in Western Australia.

Chevron and its partners Apache Corporation and Kuwait Foregin Exploration Company had signed a non-binding document to sell 1.5 million tonnes of liquefied natural gas each year to KOGAS.

Chevron, which holds the majority stake in the project will have 75 per cent of the gas revenue. Supplementing the gas deal is a potential equity agreement with KOGAS on its plans to acquire a 5 per cent stake in the entire Wheatstone project that includes a 5 per cent interest in Apache's and KUFPEC's Brunello and Julimar gas fields.

This equity participation will increase KOGAS' LNG delivery from the Wheatstone project to 1.95 million tonnes.

The Wheatstone agreement is the latest between Chevron and KOGAS which have also entered into a gas sales deal over the $43 billion Gorgon project late last year.

Front-end engineering and design is still being accomplished in the Wheatstone project and a final investment move is expected in 2011.

Chevron last year claimed the record for Australia's largest ever resource deal with a $90 billion gas sales agreement over Wheatstone with Tokyo Electric Power.

TEP, under that deal, consented to purchase 4.1 million tonnes of Wheatstone LNG for up to 20 years.