Woodside has agreed to assume operatorship of the Australian Bass Strait assets that it shares with ExxonMobil and plans to develop additional gas resources using existing infrastructure there…
Woodside has agreed to assume operatorship of the Australian Bass Strait assets that it shares with ExxonMobil and plans to develop additional gas resources using existing infrastructure there.
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.
The Bass Strait assets include the Gippsland Basin Joint Venture (GBJV) and the Kipper Unit Joint Venture (KUJV). Each of Woodside and ExxonMobil Australia hold a 50% participating interest in the GBJV and 32.5% participating interest in the KUJV.
Woodside and ExxonMobil’s equity interests in the assets and current decommissioning plans and provisions remain unchanged.
The 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 realize over $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
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