ExxonMobile secure drilling rig for Bass Strait Kipper Project
ExxonMobil subsidiary, Esso Australia Resources Pty Ltd, today announced that it has secured a drilling rig for the Kipper Gas Project in Bass Strait, following an agreement with Apache Energy Limited and Diamond Offshore (Australia) LLC.
The agreement secures the use of the ‘Ocean Patriot’ semi-submersible drilling rig, which is operated by Diamond, to drill the Kipper subsea wells.
The Kipper Gas Project is being pursued by the Kipper Unit Joint Venture – Esso Australia Resources Pty Ltd (operator, 32.5%), BHP Billiton Petroleum (Bass Strait) Pty Ltd (32.5%) and Santos Limited (35%).
Commenting on the announcement, Gippsland Project Executive David Kudlak said that this is a key milestone in the project’s development.
“Having made a final investment decision in December 2007, we continue to progress the billion dollar Kipper project in a timely manner. In April 2008, we awarded key engineering contracts for the construction and development of Kipper, and have now secured the drilling rig,” he said.
“We expect to commence drilling in early 2010, and anticipate that the drilling program will run for three to six months.
“The Kipper project will not only help underpin the jobs of the 1000 people currently employed in Victoria through the ExxonMobil Group of Companies, but at the same time will deliver significant benefits throughout the local economy, including the creation of up to 200 further jobs during the construction phase,” he said.
ExxonMobil’s Director of Gas Marketing, James Hunsaker, added that “Kipper provides a new supply source to meet the growing demand for cleaner-burning natural gas currently being experienced across eastern Australia.
“The Kipper project, as well as other projects currently in the pipeline, demonstrates that Bass Strait has a long-term future and has more than 30 years of gas remaining,” Mr. Hunsaker said.
The Kipper field will be developed by the installation of a number of subsea wells, piped back to existing infrastructure at Longford. First gas is expected in 2011.
