- ExxonMobil, partnering with Mitsui and Woodside, will invest $200 million in the Kipper 1B gas project to boost the Australian gas supply by 2026.
- The project involves drilling a subsea well and upgrading the West Tuna platform in the Gippsland Basin by 2027 to address potential gas shortages.
- Kipper 1B builds on previous successful projects, contributing to Australia’s energy security and sustaining gas production until the 2030s.
Through Esso Australia Resources Pty Ltd, ExxonMobil announced a $200 million investment in the Kipper 1B gas project. The company partnered with Mitsui E&P Australia and Woodside Energy to boost gas supply for the Australian market and address potential shortages starting in 2027.
The Kipper 1B project in the Gippsland Basin off Victoria’s southeastern coast involves drilling a new subsea well and upgrading the West Tuna platform. ExxonMobil plans to start drilling later this year and aims to complete the project by winter 2026.
Mitsui holds a 35% stake in the project, while Woodside and ExxonMobil hold 32.5%. This collaboration allows the companies to optimise resource development and ensure efficient gas distribution, supporting Australia’s growing energy demand. Esso Australia continues to invest in Gippsland operations, with plans to sustain production until the 2030s.
Kipper 1B is part of a broader effort to enhance Australia’s energy security. The project follows the successful completion of the Kipper compression and West Barracouta projects, launched in 2021. These earlier initiatives increased domestic gas supply, and Kipper 1B aims to expand that capacity further.
The Kipper 1B project will increase gas supply, providing a reliable energy source for Australian households and businesses. With rising gas demand and the depletion of older fields, this investment is crucial in strengthening the country’s energy infrastructure.
The Gippsland Basin remains a key gas-producing region, and Esso Australia continues to drive its development. The company’s ongoing investments have maintained production and delivered stable energy to the domestic market.
ExxonMobil’s latest investment reinforces its long-term commitment to Australia’s energy future. By collaborating with Mitsui and Woodside, the company aims to complete the Kipper 1B project efficiently, securing a critical energy source for the coming years.
The Kipper 1B project will significantly contribute to Australia’s gas supply, helping to prevent potential shortages and maintain energy security. ExxonMobil’s decision to invest in local energy resources highlights the importance of sustained development to meet the needs of a growing population and economy.
In summary, ExxonMobil’s $200 million investment in the Kipper 1B gas project, alongside partners Mitsui and Woodside, marks a critical step toward securing Australia’s energy future. This project will expand gas production in the Gippsland Basin, and help meet rising demand, ensuring a stable energy supply in the years ahead.