Esso Australia, an Australian affiliate of ExxonMobil, and its co-venture partners Mitsui and Woodside Energy are planning to invest almost $200 million into a project offshore Australia that will bring additional gas supply from the Gippsland Basin online.
The Kipper 1B Project will use the VALARIS 107 jack-up rig to drill and install one subsea well into the Kipper field and will include significant upgrades to the West Tuna platform.
Drilling is set to begin later this year, with upgrades to the platform carried out simultaneously. The project is expected to expand capacity from the Kipper field, delivering gas supplies to the market ahead of winter 2026.
Kipper 1B follows the completion of the recent Kipper Compression Project and the West Barracouta project that came online in 2021.
“Esso Australia continues to invest in multiple projects that ensure our Gippsland operations sustain gas production well into the 2030s,” said ExxonMobil Australia Chair Simon Younger.
“Projects like Kipper 1B are vital to help meet the country’s energy security needs by bringing new supply online, which will be used exclusively for Australia’s domestic market. Natural gas is a safety net of our energy system, ensuring reliable, affordable power for homes and businesses while providing the stability needed to transition to a lower carbon future.”
Esso operates assets in the Bass Strait that form part of the Gippsland Basin Joint Venture between Esso and Woodside and the Kipper Unit Joint Venture between Esso, Woodside, and Mitsui.
Kipper is a conventional gas field located 45 kilometers off the coast of Victoria in the Gippsland Basin, producing gas, condensate, and LPG for sale in the domestic Australian market. The project started production in 2015.