Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

ExxonMobil to boost Australian gas with $295m investment and more to come

© Supplied by ShutterstockPost Thumbnail

ExxonMobil (NYSE:XOM) has taken a final investment decision (FID) to spend A$400 million ($295 million) on developing additional gas from the Gippsland basin Kipper field offshore Australia. Significantly, the country’s main industry lobby group said there is a massive opportunity for Australia to have more big investment decisions like this – but crucially the policy settings have got to be right.

Andrew McConville, chief Executive of the Australian Petroleum Production & Exploration Association (APPEA), said yesterday that more industry investment like ExxonMobil’s relies on supportive investment settings to help make Australia more competitive in global capital markets.

He added that gas was a cleaner energy source to support the growth of renewables and projects like ExxonMobil’s would play an important role in reducing emissions.

“Natural gas is replacing coal and wood-fired power across the Asia-Pacific region to help meet net zero targets so this project will play its part reducing emissions,” he said.

ExxonMobil said yesterday that its latest investment could deliver an additional 200 petajoules of gas over the next five years. The US major also revealed it was advancing funding decisions to optimise production from the Turrum field.

APPEA says gas will play vital role in cutting APAC emissions

“Our ongoing investment and commitment to supplying Australian customers means that the Gippsland Basin remains the largest single source of natural gas for Australia’s east coast,” noted ExxonMobil.

“There is still plenty of gas remaining in Bass Strait and we are working hard to unlock its full value. More investment will be required for Victoria to maintain its reliable supply of natural gas, especially during winter,” added the company.

In early 2021, ExxonMobil commissioned the West Barracouta project in the Gippsland Basin, one of the largest domestic gas projects in Australia this decade.

Multi-billion dollar plug and abandonment market emerges in Australia

Last year, more than A$27 billion new oil and gas investments were announced in Australia, according to APPEA.

In 2019 ExxonMobil put its oil and gas-producing Gippsland Basin assets on the Australian east coast up for sale. As a pivotal producer on the east coast, the assets play a key role in supplying gas to Australia’s biggest market. But they are complex, mature assets. And the company struggled to find realistic buyers, who could get comfortable with the age of the assets, declining production, and significant decommissioning liabilities.

Recommended for you

More from Energy Voice

Latest Posts