EXXONMOBIL subsidiary Esso Australia, along with partners Woodside and Mitsui, is to expend almost $200 million on tapping additional gas supply in the Gippsland Basin off southern Victoria.
The Kipper 1B Project has been approved by the co-ventures and will utilise the Valaris 107 jack-up rig to drill and install one subsea well into the Kipper field, with the project also involving significant upgrades to the West Tuna platform.
Kipper 1B follows the successful completion of the recent Kipper Compression Project, and the West Barracouta project that came online in 2021.
Since late last year Valaris 107, a KeppelFels MOD V Class B rig, capable of working in waters up to 351 feet deep, has been working on the decommissioning of 26 wells in the Basin, having previously worked in Bass Strait in 2023 drilling a carbon capture and storage appraisal well for the Golden Energy Storage project, and in NZ’s Maui and Pokohura gas fields for a year in 2022.
The decom task involved the plug and abandonment of the 26 wells across the Bream B, Perch and Dolphin wells and five subsea platforms, Mulloway, Whiptail, Marlin-1, East Pilchard-1, and Halibut-1.
Esso and partners have the rig on hire for a year from November 2024 at a reported day rate of US$153,000.
“Esso Australia continues to invest in multiple projects that ensure our Gippsland operations sustain gas production well into the 2030s,” ExxonMobil Australia chair Simon Younger 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.
“Natural gas is a safety net of our energy system, ensuring reliable, affordable power for homes and businesses while providing the stability needed to transition to a lower carbon future.”
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.
