Exxon Mobil subsidiary Esso Australia Resources has revealed plans to invest nearly $200m investment in the Kipper 1B project to enhance gas production from the Gippsland Basin in Australia.
Approved by Esso Australia and co-venturers Mitsui E&P Australia and Woodside Energy, the project will involve drilling a subsea well into the Kipper field using the VALARIS 107 jack-up rig and upgrading the West Tuna platform.
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The Australian Competition & Consumer Commission has warned of potential gas shortages on the east coast from 2027, possibly requiring imports, reported Reuters.
The regulator has also cited lengthy regulatory approvals and policy uncertainty as challenges to expanding domestic supply.
Drilling into the Kipper field is set to begin later this year, with platform upgrades occurring simultaneously.
The project is anticipated to expand capacity from the Kipper field, delivering critical gas supplies ahead of winter 2026.
Kipper 1B follows the completion of the Kipper Compression Project and the West Barracouta project, which came online in 2021.
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.”
Esso operates assets in Bass Strait as part of the Gippsland Basin joint venture (JV) with Woodside, and the Kipper Unit JV alongside Mitsui and Woodside. Mitsui holds a 35% stake in Kipper while Woodside and Exxon Mobil each own 32.5%.
