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Australia: ExxonMobil Investing $295M to Boost Gas Production from Gippsland Basin Assets

March 17, 2022

©ExxonMobil
©ExxonMobil

ExxonMobil's Australian subsidiary Esso Australia has made a final investment decision to develop additional gas from the Gippsland Basin Kipper offshore field in Australia's Bass Strait.

The company said the move would "help secure much-needed supply for the Australian domestic market."

Esso Australia also said it was advancing funding decisions to optimize production from the Turrum field. 

"These estimated AUD $400 million [$295,4 million] investments could deliver an additional 200 petajoules of gas over the next five years." the company said.

"About 30 petajoules will come online in 2023, and provide critical gas supplies to help avert winter supply risks forecast for Australia’s southern states in the Australian Energy Market Operator’s 2021 Gas Statement of Opportunities," the company said.

ExxonMobil Australia Chair, Dylan Pugh, said: "Natural gas has an increasingly important role in meeting demand for cleaner fuel, lowering GHG emissions in the power sector and supporting higher penetration of renewables by maintaining reliability, resilience and stability of the grid,” said Pugh. 

“Our ongoing investment and commitment to supplying Australian customers means that the Gippsland Basin remains the largest single source of natural gas for Australia’s east coast. “There is still plenty of gas remaining in Bass Strait and we are working hard to unlock its full value. More investment will be required for Victoria to maintain its reliable supply of natural gas, especially during winter.” 

In early 2021, Esso Australia commissioned the West Barracouta project in the Gippsland Basin, "one of the largest domestic gas projects this decade."

Back in 2019, ExxonMobil said it was planning to sell its assets in the Gippsland Basin, but it in 2020 called off the sale, some six weeks after the deadline for indicative bids for the portfolio set by adviser JPMorgan.



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