ExxonMobil said Thursday that it is carrying out early front-end engineering design studies (pre-FEED) to determine the potential for carbon capture and storage (CCS) that would cut greenhouse gas emissions from multiple industries in Australia’s Gippsland basin. However, collaboration with other industries and supportive government policies will be key to the project’s success.
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.
Australia is on the verge of its largest-ever wave of decommissioning as offshore development wells reach the end of their producing life. This is both adding headaches for producers and creating a multi-billion dollar opportunity for plugging and abandonment (P&A) suppliers.
ExxonMobil believes its latest field development will likely be the largest domestic gas project for eastern Australia this decade after the $400 million West Barracouta project started up in the Gippsland basin.