Esso Australia to invest $200 million in Gippsland Basin

Australia

MELBOURNE, February 24, 2025 – Esso Australia Resources, a subsidiary of ExxonMobil Australia, will invest nearly USD 200 million in the Kipper 1B Project to bring additional gas supply on line from the Gippsland Basin, the company said on Monday.

The project, approved by Esso Australia and co-venturers MEPAU A(Mitsui) and Woodside Energy (Bass Strait) (Woodside), will utilise the Valaris 107 jackup rig to drill and install one subsea well in the Kipper field. It also includes significant upgrades to the West Tuna platform.

Kipper 1B follows the completion of the Kipper Compression Project and the West Barracouta project, both of which came on line in 2021.

Drilling in the Kipper field is scheduled to begin later this year, with simultaneous upgrades to the West Tuna platform. The project is expected to increase capacity from the field and deliver gas supplies to the domestic market ahead of winter 2026.

Esso operates assets in Bass Strait that form part of the Gippsland Basin Joint Venture with Woodside and the Kipper Unit Joint Venture with Woodside and Mitsui.

“Esso Australia continues to invest in multiple projects that ensure our Gippsland operations sustain gas production well into the 2030s,” ExxonMobil Australia chair Simon Younger said.

“Projects like Kipper 1B are vital to help meet the country’s energy security needs by bringing new supply online, which will be used exclusively for Australia’s domestic market. Natural gas is a safety net of our energy system, ensuring reliable, affordable power for homes and businesses while providing the stability needed to transition to a lower-carbon future.”