ExxonMobil to invest around $200m into Australian offshore gas project

US supermajor ExxonMobil has announced a nearly $200m investment in the Kipper 1B Project, bringing online much-needed additional gas supply from the Gippsland Basin.

The project, approved by ExxonMobil subsidiary Esso Australia and its co-venturers Mitsui and Woodside Energy, will utilise the Valaris 107 jack-up rig to drill and install one subsea well into the Kipper field and provide significant upgrades to the West Tuna platform.

The 2006-built rig started work for ExxonMobil in November 2024 and will work on a $153,000 dayrate until November 2025. The contract also has two 180-day priced options.

Work on Kipper 1B follows the successful 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. 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,” said ExxonMobil Australia chair Simon Younger.

Drilling into the Kipper field is set to begin later this year, with upgrades to the West Tuna platform happening simultaneously. The project is expected to expand capacity from the Kipper field, delivering crucial gas supplies to the market ahead of winter 2026.