Valaris jackup starts drilling Australian well for Exxonmobil

August 8, 2025, by Dragana Nikše

Esso Australia, a subsidiary of U.S.-headquartered energy major ExxonMobil, has started drilling a well at a gas field in the country’s Gippsland Basin.

Valaris 107; Source: ExxonMobil Australia and New Zealand via LinkedIn

According to a social media post by ExxonMobil Australia, the drilling has started for the Kipper 1B project to recover more gas from the Gippsland Basin. The additional volumes are envisaged to support the domestic market before winter 2026.

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 exclusively for Australia’s domestic market.”

The Valaris 107 jack-up rig will be used to drill and install one subsea well in the Kipper field. Simultaneously, “significant” upgrades are planned to be carried out at the West Tuna platform, as announced in February.

In service since 2006, the Valaris 107 is a KFELS MOD V jack-up with a maximum drilling depth of 30,000 feet, or 9,144 meters. It can accommodate 112 persons. According to Valaris’ fleet status report, ExxonMobil has hired the rig until May 2026 at a day rate of $163,000. The contract includes a 180-day priced option.

Kipper is a conventional gas field located 45 kilometers off the coast of Victoria. The project, which started producing in 2015, produces gas, condensate, and LPG for sale in the domestic Australian market.

ExxonMobil also holds the Bass Strait project assets in the same basin. Last month, it was announced that Woodside Energy, its partner in the project, would take over the operatorship of what is described as Australia’s first major offshore oil and gas development.

ExxonMobil handing over reins of Australia’s legacy offshore asset to Woodside

Project & Tenders

Woodside and ExxonMobil Australia’s subsidiary Esso hold a 50% participating interest in the Gippsland Basin Joint Venture (GBJV) and a 32.5% participating interest in the the Kipper Unit Joint Venture (KUJV), with Mitsui holding the remaining 35% in the latter.