Latest news with #GippslandBasin
Yahoo
2 days ago
- Business
- Yahoo
Woodside to assume operatorship of Bass Strait assets in Australia
Woodside has agreed to take over the operatorship of the Bass Strait assets in Australia following an agreement with ExxonMobil Australia (ExxonMobil). This strategic move has the potential to unlock further development of additional gas resources. The Bass Strait assets include the Gippsland Basin Joint Venture (GBJV) and the Kipper Unit Joint Venture (KUJV). Both Woodside and ExxonMobil Australia hold a 50% participating interest in the GBJV and a 32.5% participating interest in the KUJV, with Mitsui holding the remaining 35% participating interest. Natural gas produced from the Bass Strait assets is entirely supplied to the Australian domestic market, currently meeting around 40% of domestic gas demand on the east coast of Australia, including New South Wales, Northern Territory, Queensland, South Australia, Tasmania and Victoria. Integrating the operatorship of the Bass Strait assets into Woodside's managed portfolio enhances the company's presence in Australia while leveraging its operational capabilities. Upon completion, Woodside will take over the offshore Bass Strait production assets, the Longford Gas Plant, the Long Island Point gas liquids processing facility and related pipeline infrastructure. Woodside and ExxonMobil's equity interests in the assets, as well as their existing decommissioning plans and provisions, will remain unchanged. Woodside EVP and COO Australia Liz Westcott said: 'Taking operatorship of Bass Strait demonstrates Woodside's continued commitment to meeting Australia's domestic energy demand while maximising the value of existing infrastructure.' As the new operator, Woodside will assume responsibility for asset planning and execution activities, implementing a value maximisation strategy aimed at enhancing production and improving reliability. This strategic initiative integrates Woodside's established global operational capabilities with ExxonMobil's skilled workforce in the Bass Strait, who will be transitioning to Woodside. Furthermore, taking on the operatorship of a larger portfolio of assets in Australia is expected to generate economies of scale and yield more than $60m (A$92.24m) in synergies for Woodside from the Bass Strait, after accounting for transition and integration costs. The agreement also provides flexibility to realise future development opportunities that align with Woodside's capital allocation framework. ExxonMobil Australia chair Simon Younger said: 'After operating the Gippsland Basin Joint Venture for more than 50 years, we are proud to be handing over the reins and transitioning our highly experienced Bass Strait workforce to our valued partner Woodside, a world-class operator. 'We look forward to working with Woodside as it continues to maximise Gippsland Basin production.' Woodside has identified four development wells that have the potential to provide up to 200 petajoules of sales gas to the market. Under the agreement, Woodside can independently pursue these opportunities via the Bass Strait infrastructure, contingent upon further technical development and a final investment decision. This potential production has been identified within the current contingent resource opportunity portfolio. Completion of the agreement is anticipated in 2026, contingent upon the fulfilment of certain conditions including regulatory approvals. Earlier this month, Perenco acquired the Greater Angostura oil and gas assets in Trinidad & Tobago from Woodside Energy. "Woodside to assume operatorship of Bass Strait assets in Australia" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 days ago
- Business
- Reuters
Australia's Woodside Energy takes operatorship of Bass Strait assets from ExxonMobil
July 29 (Reuters) - Australia's Woodside Energy ( opens new tab said on Tuesday it will take over operatorship of the Bass Strait oil and gas assets from ExxonMobil (XOM.N), opens new tab, unlocking an estimated $60 million in synergies. The Bass Strait portfolio includes the Gippsland Basin and the Kipper Unit joint ventures. Woodside and ExxonMobil each hold a 50% stake in the Gippsland Basin, while they own 32.5% each in the Kipper Unit. ExxonMobil had been the operator of these assets until now. The change in operatorship will not affect the companies' equity interests or existing decommissioning plans and provisions, Woodside said. The company flagged future development potential under its capital allocation framework, identifying four possible wells that could supply up to 200 petajoules of gas to the domestic market. The announcement comes just weeks after the Australian government said it was considering a gas reservation policy for the east coast to help avert supply shortfalls.
Reuters
17-03-2025
- Business
- Reuters
ExxonMobil Australia, Woodside approve final investment decision for $221 million gas project
March 17 (Reuters) - ExxonMobil's (XOM.N), opens new tab Australian unit said on Monday that its Gippsland Basin joint venture with Woodside Energy ( opens new tab has approved its final investment decision to develop the Turrum Phase 3 project, targeting underdeveloped gas resources. The approval is for the A$350 million ($221.31 million) project, which aims to drill five new wells in the Turrum and North Turrum gas fields. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. Earlier this year, Australia's competition regulator flagged that the east coast could face gas shortage supply from 2027, potentially leading to gas imports. The shortfall is expected due to structural decline and uncertainty surrounding future investments. "While depletion of the Gippsland Basin is inevitable, projects such as Turrum will ensure Bass Strait continues to produce gas for the domestic market past 2030," said Simon Younger, Chair of ExxonMobil Australia in an emailed response to Reuters. The Gippsland Basin joint venture is a 50-50 joint venture between Esso Australia Resources and Woodside Energy (Bass Strait), and operated by Esso Australia. "The Turrum Phase 3 project, and the recently approved Kipper 1B project, will unlock additional gas that is needed to avoid future shortfalls," said Liz Westcott, Woodside's executive vice president and chief operating officer for its Australian operations in a separate statement. "Every molecule of gas Woodside supplies from the Bass Strait fields is sold into the Australian domestic market for local manufacturers, power generators and homes." ($1 = 1.5815 Australian dollars)
