ExxonMobil makes FID on Australian gas project

US energy giant and LNG player ExxonMobil has made a final investment decision to develop the West Barracouta gas field in Bass Strait to bring new gas supplies to the Australian domestic market.

Image courtesy of ExxonMobil

The project, located in the VIC/L1 block offshore Victoria, is part of ExxonMobil’s investment in the Gippsland Basin.

ExxonMobil recently completed front-end engineering design work for the project, which is part of the Esso-BHP Gippsland Basin Joint Venture, and awarded contracts to Subsea 7 and OneSubsea, a Schlumberger company.

The project will be tied back to the existing Barracouta infrastructure offshore in Bass Strait, the first offshore field ever discovered in Australia.

The Gippsland Basin Joint Venture supplies about 40 percent of east coast Australian domestic gas demand, according to ExxonMobil.

The new project builds on more than $4 billion (A$5.5 billion) invested by the Gippsland Basin Joint Venture in other recent projects in Victoria to supply Australian domestic gas demand, including the Kipper Tuna Turrum offshore project and the Longford Gas Conditioning Plant.

ExxonMobil subsidiary Esso Australia Pty Ltd operates the Gippsland Basin Joint Venture on behalf of a 50-50 joint venture with BHP Billiton Petroleum (Bass Strait) Pty Ltd.