US supermajor and partners to invest hundreds of millions of dollars on Kipper 1B development
ExxonMobil and its partners are forging ahead with another development phase at its producing Kipper gas field offshore Australia.
Esso Australia Resources, a local subsidiary of ExxonMobil Australia, on Tuesday confirmed a nearly A$200 million (US$127 million) investment in the Kipper 1B project, which will exploit much-needed additional gas reserves from the Gippsland basin.
The project, which was approved by operator Esso and its co-venturers MEPAU (Mitsui) and Woodside Energy, will utilise 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 [southern hemisphere] winter 2026.
Kipper 1B follows the successful completion of the recent Kipper compression project, and the West Barracouta project that came on stream in 2021.
“Esso Australia continues to invest in multiple projects that ensure our Gippsland operations sustain gas production well into the 2030s,” said ExxonMobil Australia chair, Simon Younger.
“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.”
Younger added that natural gas is a safety net of Australia’s energy system, ensuring reliable, affordable power for homes and businesses while providing the stability needed to transition to a lower carbon future.
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 that comprises Esso, Woodside and Mitsui.
