Wednesday 29 August 2018

Esso Deepwater Gippsland Pty Ltd has commenced an offshore exploration drilling program in the Gippsland Basin to search for new sources of gas.

Esso Deepwater Gippsland is drilling two exploration wells, known as Baldfish and Hairtail, on the VIC/P70 block as part of its investment program to find and bring online new gas supplies. Esso Deepwater Gippsland holds a 100 percent interest in the VIC/P70 block, which is approximately 90km off the East Gippsland Victorian coast.

Diamond Offshore’s Ocean Monarch semi-submersible drilling rig is drilling the wells, which is expected to take several months.

Chairman Richard Owen said this ambitious exploration drilling program adds a new, exciting chapter to the exploration of the Gippsland Basin.

The AUD$120 million investment in drilling by Esso Deepwater Gippsland is in addition to other recent investments by ExxonMobil Australia in Victoria, including the AUD$4.5 billion Kipper Tuna Turrum offshore project, the AUD$1 billion Longford Gas Conditioning Plant and the future development of the West Barracouta gas field.

ExxonMobil Australia has more than 50 years of experience in Bass Strait and in 2019 celebrates its 50th year of gas production as part of the iconic Gippsland Basin Joint Venture.

Since the first well was drilled in 1965 in Bass Strait, approximately four billion barrels of crude oil and eight trillion cubic feet of natural gas have been produced.