Woodside Energy to Assume Operatorship of Bass Strait Assets from Exxon Mobil in 2026

Woodside Energy will take over operatorship of Bass Strait oil and gas assets from Exxon Mobil in 2026. The Bass Strait operations include the Gippsland basin joint venture off the coast of southeastern Australia. The acquisition is part of Woodside Energy's strategy to expand its operations and increase its presence in the Australian energy market.

Title: Woodside Energy to Take Over Operatorship of Bass Strait Oil and Gas Assets from Exxon Mobil

Woodside Energy has announced plans to take over operatorship of the Bass Strait oil and gas assets from Exxon Mobil in 2026. The Bass Strait operations, which include the Gippsland basin joint venture off the coast of southeastern Australia, are a significant part of Woodside's strategy to expand its operations and increase its presence in the Australian energy market. The handover is expected to create economies of scale and realize more than US$60 million in synergies for Woodside [2].

The Bass Strait portfolio includes the Longford gas plants, the Long Island Point gas liquids facility, and pipelines linking the offshore operations with Australia's mainland. Woodside will assume operatorship of these assets, which have been in operation since 1969, with over 11 trillion cubic feet (Tcf) of pipeline gas and over 5 billion barrels of oil produced since first production [1].

The Gippsland Basin Joint Venture (GBJV) and the Kipper Unit Joint Venture (KUJV) are the primary entities involved in the handover. Woodside and ExxonMobil Australia's subsidiary Esso hold a 50% participating interest in the GBJV and a 32.5% participating interest in the KUJV, with Mitsui holding the remaining 35% in the latter. The transfer of operatorship will not affect the companies' equity interests or existing decommissioning plans and provisions [1].

Woodside's Executive Vice President (EVP) and Chief Executive Officer (COO) Australia, Liz Westcott, stated that taking operatorship of Bass Strait demonstrates Woodside's continued commitment to meeting Australia's domestic energy demand while maximizing the value of existing infrastructure. ExxonMobil Australia Chair Simon Younger expressed pride in handing over the reins to Woodside, a world-class operator [1].

The Bass Strait operations currently supply approximately 40% of Australian east coast domestic gas demand, making it the largest supplier into the Eastern Australian domestic gas market. Woodside plans to invest in delivering additional gas, including additional development from the Kipper field and advancing funding decisions for the Turrum field. The Kipper 1B project is expected to deliver more gas to the market ahead of winter 2026 [1].

The acquisition is part of Woodside's broader strategy to leverage its existing infrastructure and expertise to maximize production and reliability. The company has identified four potential development wells within the existing contingent resource opportunity set, which could deliver up to 200 petajoules of sales gas to the market. These developments can be realized through the Bass Strait infrastructure, subject to further technical maturation and a final investment decision (FID) [1].

The transfer of operatorship will not only enhance Woodside's operational capabilities but also provide a platform for future growth and investment in the Australian energy market. The handover is expected to be finalized by 2026, with ExxonMobil's workforce transferring to Woodside to manage asset planning and execution activities [1].

References
[1] https://www.offshore-energy.biz/exxonmobil-handing-over-reins-of-australias-legacy-offshore-asset-to-woodside/
[2] https://seekingalpha.com/news/4473340-woodside-energy-to-take-over-bass-strait-operations-from-exxon