Woodside has agreed to take over the operatorship of the Bass Strait assets in Australia following an agreement with ExxonMobil Australia (ExxonMobil).
This strategic move has the potential to unlock further development of additional gas resources.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The Bass Strait assets include the Gippsland Basin Joint Venture (GBJV) and the Kipper Unit Joint Venture (KUJV).
Both Woodside and ExxonMobil Australia hold a 50% participating interest in the GBJV and a 32.5% participating interest in the KUJV, with Mitsui holding the remaining 35% participating interest.
Natural gas produced from the Bass Strait assets is entirely supplied to the Australian domestic market, currently meeting around 40% of domestic gas demand on the east coast of Australia, including New South Wales, Northern Territory, Queensland, South Australia, Tasmania and Victoria.
Integrating the operatorship of the Bass Strait assets into Woodside’s managed portfolio enhances the company’s presence in Australia while leveraging its operational capabilities.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataUpon completion, Woodside will take over the offshore Bass Strait production assets, the Longford Gas Plant, the Long Island Point gas liquids processing facility and related pipeline infrastructure.
Woodside and ExxonMobil’s equity interests in the assets, as well as their existing decommissioning plans and provisions, will remain unchanged.
Woodside EVP and COO Australia Liz Westcott said: “Taking operatorship of Bass Strait demonstrates Woodside’s continued commitment to meeting Australia’s domestic energy demand while maximising the value of existing infrastructure.”
As the new operator, Woodside will assume responsibility for asset planning and execution activities, implementing a value maximisation strategy aimed at enhancing production and improving reliability.
This strategic initiative integrates Woodside’s established global operational capabilities with ExxonMobil’s skilled workforce in the Bass Strait, who will be transitioning to Woodside.
Furthermore, taking on the operatorship of a larger portfolio of assets in Australia is expected to generate economies of scale and yield more than $60m (A$92.24m) in synergies for Woodside from the Bass Strait, after accounting for transition and integration costs.
The agreement also provides flexibility to realise future development opportunities that align with Woodside’s capital allocation framework.
ExxonMobil Australia chair Simon Younger said: “After operating the Gippsland Basin Joint Venture for more than 50 years, we are proud to be handing over the reins and transitioning our highly experienced Bass Strait workforce to our valued partner Woodside, a world-class operator.
“We look forward to working with Woodside as it continues to maximise Gippsland Basin production.”
Woodside has identified four development wells that have the potential to provide up to 200 petajoules of sales gas to the market.
Under the agreement, Woodside can independently pursue these opportunities via the Bass Strait infrastructure, contingent upon further technical development and a final investment decision.
This potential production has been identified within the current contingent resource opportunity portfolio.
Completion of the agreement is anticipated in 2026, contingent upon the fulfilment of certain conditions including regulatory approvals.
Earlier this month, Perenco acquired the Greater Angostura oil and gas assets in Trinidad & Tobago from Woodside Energy.
