Newly drilled wells to boost eastern Australia gas supply before winter 2027

September 2, 2026, by Melisa Cavcic

With energy security at the forefront, a A$350 million ($245 million) Gippsland Basin project is moving closer to first gas, with production from new wells expected before winter 2027, supporting additional gas supply for eastern Australia.

ExxonMobil and Woodside have unlocked additional Gippsland gas, which is set to start flowing from new Turrum wells before winter 2027; Source: ExxonMobil

The Gippsland Basin joint venture (JV), comprising Esso Australia, a subsidiary of U.S.-headquartered ExxonMobil, and Woodside Energy, has completed an offshore drilling campaign in Victoria’s Gippsland Basin, drilling five new production wells as part of the Turrum Phase 3 development, targeting underdeveloped gas resources in the Turrum and North Turrum fields.

The campaign was carried out at the Marlin B Complex, approximately 42 kilometers off the Gippsland coastline, with the Valaris 107 jack-up rig safely demobilized following the completion of drilling. The development represents an investment of about A$350 million and is designed to extend production from existing offshore infrastructure while supporting gas supplies to Australia’s east coast domestic market.

Simon Younger, Vice President Eastern Australia, said the successful completion of the campaign marked an important step in maintaining Gippsland’s contribution to the region’s energy supply. The project is among the largest east coast gas developments undertaken in the Gippsland Basin in recent years and forms part of nearly A$1 billion ($713 million) in recent investment across the basin.

Younger added: “I am pleased to share that our team has successfully completed the Turrum Phase 3 drilling campaign at Marlin B Complex, drilling five new wells to support future gas production from the Turrum field, and safely demobilising the Valaris 107 jack-up rig.”

According to ExxonMobil, Turrum Phase 3 is expected to deliver more gas than any single Gippsland Basin joint venture development since West Barracouta, further reinforcing the basin’s role as a key source of domestic gas for eastern Australia.

The development comes as offshore operators balance new investment in remaining gas resources with ongoing decommissioning activity across the mature Bass Strait region. For the Gippsland Basin joint venture, operated by Woodside, the latest investment aims to maximize existing infrastructure and develop additional resources while maintaining supply to the domestic market.

The company said gas produced from the Gippsland Basin is supplied exclusively to the Australian domestic market, where it supports residential demand, manufacturing and electricity generation, including providing backup for renewable energy generation.

With drilling now complete, attention turns to bringing the new wells online, with Turrum Phase 3 expected to begin contributing additional Gippsland gas supplies ahead of winter 2027.