The agreement between Woodside and ExxonMobil heralds a new strategy to consolidate its strategic role in the country’s natural gas supply. The company will assume operation of energy assets in Bass Strait, including essential facilities such as the Longford gas plant and offshore production infrastructure.
Woodside to direct Bass Strait operations
Founded in Victoria in 1954, Woodside Energy moved to Western Australia in the 1970s, where it built its reputation in the industry. With this agreement, the company returns home to take charge of one of the country’s most strategic assets: the Gippsland Basin Joint Venture(GBJV) and the Kipper Unit Joint Venture(KUJV), both shared with ExxonMobil.
The GBJV accounts for approximately 40% of the gas supply to the eastern for the eastern states of Australia. This volume is directed to homes, industry and essential services such as hospitals. For its part, the Australian has identified four new development wells with an estimated potential of 200 petajoules of gas, which could improve the country’s energy security.
By assuming these assets, Woodside projects operating synergies of more than US$60 million. This agreement contemplates the integration of ExxonMobil ‘s specialized personnel in the region, which will increase the company’s offshore operating experience.
According to CEO Meg O’Neill, this transition strengthens Woodside’s ability to move towards a more diverse energy matrix without neglecting domestic demand. The Longford plant and Long Island Point processing facilities will remain key to the supply network in southeast Australia.
Source and photo: Woodside
