Esso, Mitsui, and Woodside commit nearly $200 million to Gippsland Basin gas expansion

Esso Australia Resources Pty Ltd, a subsidiary of ExxonMobil Australia, alongside its partners Mitsui and Woodside Energy, has announced an investment approaching $200 million in the Kipper 1B Project within the Gippsland Basin to boost to Australia's domestic energy supply.

The Kipper 1B Project aims to enhance gas production by drilling and installing a new subsea well in the Kipper field. The operation will utilise the VALARIS 107 jack-up rig and will include substantial upgrades to the West Tuna platform. This initiative follows the successful completion of the Kipper Compression Project and the West Barracouta project, which commenced production in 2021.

Commitment to domestic energy security

Simon Younger, Chairman of ExxonMobil Australia, emphasised the importance of this investment, saying, "Esso Australia continues to invest in multiple projects that ensure our Gippsland operations sustain gas production well into the 2030s. 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."

The project is slated to commence drilling later this year, with the West Tuna platform upgrades occurring concurrently. The enhanced capacity from the Kipper field is expected to deliver essential gas supplies to the market ahead of winter 2026.

Collaborative effort

This venture is a collaborative effort involving the Gippsland Basin Joint Venture between Esso and Woodside, and the Kipper Unit Joint Venture comprising Esso, Woodside, and Mitsui. The collective investment underscores a shared commitment to bolstering Australia's energy infrastructure and ensuring a stable and reliable gas supply for the nation's needs.