ExxonMobil has announced the commencement of new oil and gas flows from the Kipper Tuna Turrum project in Bass Strait. The new flows are expected to secure Victoria’s future fuel needs.
“The Kipper Tuna Turrum project will help secure east Australia’s energy future, and holds enough energy to power a city of a million people for 35 years,” said Richard Owen, chairman of ExxonMobil Australia in a statement.
“Development of Australia’s natural gas resources will also yield significant environmental benefits. Natural gas is cleaner-burning and, when used to generate electricity, can reduce carbon dioxide emissions by up to 60 percent,” added Mr. Owen.
The project is said to be worth approximately $4.5 billion and covers the Kipper, Tuna and Turrum oil and gas fields. Its commencement has created 1300 construction and installation jobs with a total of almost A$2.8 billion in local content, as reported by Invest Victoria.
The Kipper Tuna Turrum project represents the largest domestic oil and gas endeavor on the eastern coast. It holds enough capacity to provide sufficient amount of energy to power a city with a million residents for many years to come.
Gippsland and Victorian economies are to feel the direct impact, as the project will most definitely generate work for local suppliers and contractors.
The initiation of the project will boost oil and fuel production from Brass Strait which has been producing these commodities for 40 years.
This move will increase ExxonMobil’s production capacity in the region as the company is already producing natural gas from the Tuna fields via two new pipelines.
In addition, the company is also producing oil from the Turrum fields through the newly installed Martin B platform, which is the first newly installed oil platform in Brass Strait in over a decade.
ExxonMobil are also planning on completing the new gas conditioning plant in Longford by 2016. The new facility will be used to process the gas produced from the Turrum and Kipper fields.
The Turrum and Tuna projects are incorporated in the Gippsland Basin Joint Venture, in which Esso Australia Resources Pty Ltd, as operator, and BHP Billiton Petroleum (Bass Strait) Pty Ltd each have a 50 percent interest.
The Kipper venture participants are Esso Australia Resources Pty Ltd (32.5 percent and operator) and subsidiaries of BHP Billiton (32.5 percent) and Santos Limited (35 percent).