Oil and gas company Woodside has agreed to assume operatorship of the Bass Strait gas assets following an historic agreement with ExxonMobil Australia.
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.
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This means Woodside will take on the responsibility for asset planning and execution activities, pursuing a value maximisation 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.
Operatorship of a larger group of assets in Australia will create economies of scale which are expected to realise 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 realise 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.
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.
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ExxonMobil Australia chair Simon Younger said, “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.”
Completion is targeted in 2026 and is subject to conditions precedent including obtaining regulatory approvals.
