Esso Australia Resources, a subsidiary of ExxonMobil Australia, and its partners are set to invest nearly $200m in the Kipper 1B Project to increase gas output from the Gippsland Basin offshore Australia.
The development, undertaken with co-venturers MEPAU A (Mitsui) and Woodside Energy (Bass Strait), will advance production from the Kipper gas field through new drilling and infrastructure upgrades. The project is scheduled to commence later this year, with first gas expected before winter 2026.
The initiative involves drilling a new subsea well in the Kipper field using the VALARIS 107 jack-up rig and making modifications to the West Tuna platform.
The Kipper 1B Project builds on previous developments in the region, including the installation of subsea wells KPA-A2 and KPA-A4 under Kipper Stage 1A.
ExxonMobil Australia chair Simon Younger said: “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.
“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.”
Esso Australia operates its Bass Strait assets as part of the Gippsland Basin Joint Venture with Woodside Energy, while the Kipper Unit Joint Venture consists of Esso, Woodside, and Mitsui.
The Kipper 1B Project follows the completion of the Kipper Compression Project in October 2024, which installed compression facilities on the West Tuna platform to maintain production levels as reservoir pressure declined.
The latest investment also follows the West Barracouta project, which commenced production in 2021.
