ByTsvetana Paraskova– Mar 17, 2025, 7:29 AM CDT
A joint venture of ExxonMobil and Woodside Energy has approved a $222-million project to drill new wells and boost natural gas production from fields in the Gippsland Basin offshore southeastern Australia.
The 50/50 joint venture has taken the final investment decision to invest US$222 million (AUS$350 million) in the development of Turrum Phase 3, a project that will see the drilling of five new wells in the Turrum and Turrum North gas fields, Exxon’s Australian unit said on Monday in a statement carried by Reuters.
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“While depletion of the Gippsland Basin is inevitable, projects such as Turrum will ensure Bass Strait continues to produce gas for the domestic market past 2030,” Simon Younger, Chair of ExxonMobil Australia, told Reuters in emailed comments.
Exxon and Woodside have recently approved another project to boost Australia’s domestic gas supply.
Last month, Exxon’s unit Esso Australia Resources Pty Ltd and its co-venturers Mitsui and Woodside Energy approved the Kipper 1B Project to bring online much-needed additional gas supply from the Gippsland Basin.
The project will involve the drilling and installation of one subsea well into the Kipper field, and significant upgrades to the West Tuna platform. Kipper 1B is expected to expand capacity from the Kipper field, delivering crucial gas supplies to the market ahead of winter 2026, Exxon said.
“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,” ExxonMobil Australia’s Younger said last month.
The Gippsland Basin is one of Australia’s most prolific hydrocarbon provinces located about 200 km (125 miles) east of the city of Melbourne.
Australia is betting on boosting natural gas production as domestic supply in major consuming areas is often strained at peak demand periods.
Australia’s east coast could see shortages of natural gas as early as in 2027 unless more supply is made available soon, the Australian Competition and Consumer Commission (ACCC) said in a report last year, adding another warning about the domestic market of one of the world’s biggest LNG exporters.
By Tsvetana Paraskova for Oilprice.com
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