Woodside takes over operatorship of Bass Strait assets from ExxonMobil
Woodside Energy has formally taken over as operator of the key Bass Strait oil and gas assets previously managed by ExxonMobil Australia, in a move set to strengthen its domestic operations and secure future gas supply for the Australian east coast.
Under the new arrangement, Woodside assumes operatorship of the Gippsland Basin and Kipper Unit joint ventures. This includes major infrastructure such as the Longford Gas Plant, Long Island Point liquids facility, and connecting pipelines. While the ownership structure of the assets remains unchanged, Woodside will now lead operations, maintenance, and development activities.
The company expects to unlock approximately $60 million in operational synergies through integration and scale efficiencies. These savings are net of transition and integration costs, which are expected to be absorbed during the shift in operatorship.
Crucially, Woodside has identified the potential for up to four new development wells in the existing contingent resource base. If approved, these wells could contribute an estimated 200 petajoules of additional sales gas into the domestic market — enough to significantly bolster supply during a period of increasing demand.
Liz Westcott, Executive Vice President and Chief Operating Officer for Woodside Australia, emphasised that this milestone supports the company’s broader strategy to secure energy for both Western Australia and the eastern seaboard. “This transition reflects our commitment to meeting Australia’s energy needs, not just now but into the future,” she said.
Simon Younger, Chair of ExxonMobil Australia, acknowledged the company's 55-year legacy in the Gippsland Basin and expressed confidence in Woodside’s capability to drive value from the assets. “Woodside has the operational depth to manage these facilities and continue supplying Australian households and businesses,” he stated. Employees involved in the operations will transfer to Woodside, ensuring continuity and retention of expertise.
The transition is subject to regulatory approvals and is expected to be finalised in 2026. Until then, both companies will work closely to ensure a smooth handover.
This strategic shift consolidates Woodside’s footprint in Australia’s upstream gas sector, positioning it as a key player in maintaining national energy security. It also aligns with the company’s capital efficiency goals and its response to anticipated changes in government policy around gas supply and reservation.
The takeover follows the March 2025 joint approval by Woodside and ExxonMobil of the $228 million Turrum Phase 3 gas project, aimed at preventing a potential supply shortfall on the east coast by 2027. The two firms are also progressing with the Kipper 1B development, targeting first gas by early 2026.
Woodside reiterated its domestic focus in its recent quarterly report, maintaining its full-year production guidance at 188 to 195 million barrels of oil equivalent and highlighting the increasing proportion of its output allocated to Australian customers.
With this move, Woodside is reinforcing its operational presence across Australia, increasing development flexibility, and positioning itself to play a leading role in shaping the country’s future energy landscape.
