ExxonMobil Australia And Partners Ramp Up Kipper 1B Project Investment: Details

Exxon Mobil Corporation XOM subsidiary, Esso Australia Resources Pty Ltd, revealed a nearly $200 million investment in the Kipper 1B Project.

Esso manages assets in Bass Strait, which are part of the Gippsland Basin Joint Venture with Woodside Energy, as well as the Kipper Unit Joint Venture with Woodside and Mitsui.

The Kipper 1B Project, approved by Esso Australia and its co-venturers will utilize the VALARIS 107 jack-up rig to drill and install a subsea well in the Kipper field.

The project also includes major upgrades to the West Tuna platform and drilling in the Kipper field is scheduled to begin later this year, with simultaneous upgrades to the West Tuna platform.

The project aims to boost capacity from the Kipper field, ensuring a critical gas supply to the market before the winter of 2026.

Notably, the Kipper 1B Project builds on the success of the recently completed Kipper Compression Project and the West Barracouta project, which went live in 2021.

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ExxonMobil Australia Chair Simon Younger said, “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.”

Investors can gain exposure to XOM via iShares U.S. Energy ETF IYE and SPDR Select Sector Fund – Energy Select Sector XLE.

Price Action: XOM shares are down 0.27% at $110.39 at the last check Monday.

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