Woodside has agreed to take over operatorship of the Bass Strait gas assets from ExxonMobil Australia, unlocking opportunities to develop additional gas resources and strengthening its position in the Australian energy sector.
The agreement marks a significant milestone, consolidating Bass Strait’s offshore production facilities, gas processing plants, and pipeline infrastructure into Woodside’s operated portfolio.
Upon completion, targeted for 2026 pending regulatory approvals and other conditions precedent, Woodside will operate the offshore Bass Strait production assets, the Longford Gas Plant, the Long Island Point gas liquids processing facility, and associated pipelines.
While operatorship and operational responsibility will transfer to Woodside, equity interests held by both companies and current decommissioning plans will remain unchanged.
As the new operator, Woodside plans to focus on asset planning and execution with a strategy aimed at maximising value through enhanced production and reliability improvements.
The transition brings together Woodside’s global operational expertise with ExxonMobil’s experienced Bass Strait workforce, who will join Woodside, bolstering the company’s overall operational capabilities.
The expanded asset portfolio under Woodside’s control is expected to generate significant economies of scale, with anticipated synergies exceeding US$60 million after accounting for transition and integration costs.
Furthermore, the agreement opens the door for future developments under Woodside’s capital allocation framework.
Woodside has identified four potential development wells within the Bass Strait contingent resource base that could yield up to 200 petajoules of sales gas.
The company will have sole discretion to develop these prospects via the existing Bass Strait infrastructure, subject to further technical evaluation and a final investment decision.
Woodside EVP and COO Australia Liz Westcott expressed strong support for the agreement, stating: “As a proudly Australian company, Woodside supports essential domestic energy needs in both Western Australia through the North West Shelf, Pluto and Macedon operations, and on the east coast through its equity participation in Bass Strait.
“Taking operatorship of Bass Strait demonstrates Woodside’s continued commitment to meeting Australia’s domestic energy demand while maximising the value of existing infrastructure.”
ExxonMobil Australia Chair Simon Younger highlighted ExxonMobil’s ongoing dedication to reliable gas supply and the partnership’s positive outlook: “After operating the Gippsland Basin Joint Venture for more than 50 years, we are proud to be handing over the reins and transitioning our highly experienced Bass Strait workforce to our valued partner Woodside, a world-class operator.
“We look forward to working with Woodside as it continues to maximise Gippsland Basin production.”
The transaction is expected to enhance Woodside’s footprint in Australia, reinforcing its status as a leading energy company committed to delivering reliable domestic gas supplies while exploring growth opportunities in the Bass Strait region.
