Woodside Energy, a major Australian oil and gas exploration and production company, has signed an agreement to assume operatorship of the offshore production assets in Bass Strait previously held jointly with ExxonMobil. The transaction includes offshore production facilities, the Longford gas plant, the Long Island Point gas liquids processing site, and the associated pipeline infrastructure.
An essential portfolio for domestic supply
The Bass Strait assets comprise the Gippsland Basin Joint Venture (GBJV) and the Kipper Unit Joint Venture (KUJV). Woodside Energy and ExxonMobil each hold a 50% interest in GBJV and a 32.5% interest in KUJV. Natural gas extracted from these fields accounts for approximately 40% of the domestic gas demand on Australia’s east coast, making these assets a key component of the national energy system.
Woodside Energy, as operator, will be responsible for the planning and execution of activities across the full perimeter concerned, aiming to optimise production and improve infrastructure reliability. Completion of the transition is expected in 2026, subject to the receipt of regulatory approvals.
Transfer of personnel and expected synergies
All personnel currently assigned to Bass Strait assets at ExxonMobil will transfer to Woodside Energy, ensuring operational continuity. The distribution of interests and current decommissioning plans will remain unchanged following this transfer of responsibilities.
According to Woodside Energy’s projections, this transaction should generate over $60mn (about AUD89mn) in synergies after accounting for transition and integration costs. The company also anticipates greater flexibility for developing future projects due to this expanded operating perimeter.
Development outlook and regulatory framework
Four potential development wells have been identified by Woodside Energy, which could deliver up to 200 petajoules (Pj) of marketable gas. These projects, to be carried out by Woodside Energy using existing Bass Strait infrastructure, will require further technical maturation and a final investment decision.
The Chairman of ExxonMobil Australia reaffirmed the company’s commitment to maintaining reliable gas supply for the Australian market while continuing collaboration with Woodside Energy on maximising production in the Gippsland Basin.
Australia remains a central player in global liquefied natural gas (LNG) exports, with 82mn tonnes shipped in 2024, surpassing volumes recorded in previous years. Regulatory constraints and domestic gas policies have sometimes slowed sector growth, according to industry participants. Continued development of national resources remains a strategic issue for balancing the domestic market and exports internationally.
