Woodside will assume operatorship of ExxonMobil’s Bass Strait assets, unlocking potential development of additional gas resources in Australia.
Consolidating operatorship of the Bass Strait assets into Woodside’s operated portfolio strengthens Woodside’s footprint in Australia and reflects Woodside’s long history of operating excellence.
From completion, Woodside will assume operatorship of the offshore Bass Strait production assets, the Longford Gas Plant, the Long Island Point gas liquids processing facility and associated pipeline infrastructure. Woodside and ExxonMobil’s equity interests in the assets and current decommissioning plans and provisions remain unchanged.
As operator, Woodside will take on the responsibility for asset planning and execution activities, pursuing a value maximization strategy that targets further production and reliability improvements. This strategic move combines Woodside’s existing global operating capabilities with ExxonMobil’s highly experienced Bass Strait workforce who will transfer to Woodside, further strengthening Woodside’s overall operating expertise.
Operatorship of a larger group of assets in Australia will create economies of scale which are expected to realize over US $60 million in synergies for Woodside from the Bass Strait after deduction of transition and integration costs.
The agreement also creates flexibility to realize future development opportunities that meet Woodside’s capital allocation framework. Woodside has identified four potential development wells that could deliver up to 200 petajoules of sales gas to the market. Under the agreement, Woodside can solely develop these opportunities through the Bass Strait infrastructure subject to further technical maturation and a final investment decision. This potential production has been identified from within the existing contingent resource opportunity set.
Woodside EVP and COO Australia Liz Westcott said the rationale for the agreement is compelling and the transfer of operatorship reinforces Woodside’s position as Australia’s leading energy company.
“As a proudly Australian company, Woodside supports essential domestic energy needs in both Western Australia through the North West Shelf, Pluto and Macedon operations, and on the east coast through its equity participation in Bass Strait.
“Taking operatorship of Bass Strait demonstrates Woodside’s continued commitment to meeting Australia’s domestic energy demand while maximizing the value of existing infrastructure,” she said.
ExxonMobil Australia Chair Simon Younger said ExxonMobil remains committed to providing reliable supplies of gas to its customers in Australia.
“After operating the Gippsland Basin Joint Venture for more than 50 years, we are proud to be handing over the reins and transitioning our highly experienced Bass Strait workforce to our valued partner Woodside, a world-class operator. We look forward to working with Woodside as it continues to maximize Gippsland Basin production,” he said.
Completion is targeted in 2026.
