Woodside’s agreement with ExxonMobil to assume operatorship of the Bass Strait assets both cements the company’s legacy in the state where it was founded more than 70 years ago and reinforces its position as Australia’s leading energy company.

From an eager but initially unsuccessful junior explorer, born in Victoria in 1954, Woodside found its feet in Western Australia in the early 1970s.

Having built a 40-year track record of safe and reliable operations in Australia and internationally, Woodside is now set to return to its roots as operator of one of the nation’s most strategically important energy sources.

CEO and Managing Director Meg O’Neill said the deal “further cements Woodside’s central role in Australia’s energy future and is an important step in our strategy to thrive through the energy transition.”

She added: "Every molecule of our Bass Strait gas goes to Australians and Australian businesses, and this deal unlocks the potential to develop more gas for east coast customers."

The Bass Strait assets include the Gippsland Basin Joint Venture (GBJV) and the Kipper Unit Joint Venture (KUJV).

Woodside and ExxonMobil Australia each holds a 50% interest in the GBJV and a 32.5% interest in the KUJV. After the deal to assume operatorship is finalised, the equity relationship in the GBJV will remain unchanged at 50:50.

The GBJV is Australia’s first major offshore oil and gas development, and Woodside will steward a legacy that has delivered 11 trillion cubic feet of gas and 4 billion barrels of oil since 1969. The asset also produces condensate, LPG and ethane for both domestic and international customers.

On completion of the agreement (targeted for 2026 and subject to regulatory approvals), 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 GBJV currently delivers about 40% of gas supplied to Australia’s eastern states. Woodside has identified four potential development wells that could deliver up to 200 petajoules of sales gas to the market.

The operatorship will create economies of scale which are expected to realise more than US$60 million in synergies for Woodside from the Bass Strait. And ExxonMobil’s highly experienced Bass Strait workforce, who will transfer to Woodside when the deal completes, will further boost the company’s operating expertise.

Woodside EVP and COO Australia Liz Westcott said: “Taking operatorship of Bass Strait demonstrates Woodside’s continued commitment to meeting Australia’s domestic energy demand while maximising the value of existing infrastructure.”

“As we pursue our mission to supply gas alongside renewables in the energy transition, we should remember Victoria’s residents and industries rely on Bass Strait gas to power homes, businesses and vital services such as hospitals,” she pointed out.

“Once local operatorship is secured, we can look forward to continuing the enduring spirit of innovation that defines both our company and the history of Victoria.”

KeyFacts Energy: Woodside Australia country profile   l   ExxonMobil Australia country profile