ExxonMobil’s Esso, Mitsui and Woodside to Invest $200M in Gas Project Off Australia

ExxonMobil’s Australian subsidiary Esso Australia Resources and its partners have announced a nearly $200 million investment in the Kipper 1B project which will bring online additional gas supply from the Gippsland Basin.

The project, which was approved by Esso Australia, and its co-venturers, MEPAU A (Mitsui), and Woodside Energy, will utilize the Valaris' jack-up rig VALARIS 107 to drill and install one subsea well into the Kipper field, and involve significant upgrades to the West Tuna platform.

Drilling into the Kipper field is set to begin later this year, with upgrades to the West Tuna platform happening simultaneously.

The project is expected to expand capacity from the Kipper field, delivering crucial gas supplies to the market ahead of winter 2026.

Kipper 1B follows the successful completion of the recent Kipper Compression Project, and the West Barracouta project that came online in 2021.

“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, said ExxonMobil Australia Chair Simon Younger.

Esso operates assets in Bass Strait that form part of the Gippsland Basin joint venture between Esso and Woodside, and the Kipper Unit Joint Venture, with Esso, Woodside, and Mitsui as partners.