ExxonMobil announced a nearly $200 million investment for the development of the Kipper 1B Project, aimed to bring online much-needed additional gas supply from the Gippsland Basin to the market ahead of 2026.

“Esso Australia continues to invest in multiple projects that ensure our Gippsland operations sustain gas production well into the 2030s,” said ExxonMobil Australia Chair Simon Younger.

“Projects like Kipper 1B are vital to help meet the country’s energy security needs by bringing new supply online, which will be used exclusively for Australia’s domestic market,” he added.

Approved by ExxonMobil Australia subsidiary, Esso and its co-venturers Mitsui and Woodside, the project involves drilling and installing one subsea well into the Kipper field using the VALARIS 107 jack-up rig and upgrading the West Tuna platform.

Drilling into the Kipper field is set to begin later this year, with upgrades to the West Tuna platform happening simultaneously, said ExxonMobil.

Kipper 1B follows the successful completion of the Kipper Compression Project and the West Barracouta project, which came online in 2021.