Engineering approved for Kipper gas field

Dec. 7, 2006
A group comprising ExxonMobil Corp., BHP Billiton, and Santos Ltd. has agreed to begin engineering and design on the Kipper gas field development in the offshore Gippsland basin of southeast Victoria.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Dec. 7 -- A group comprising ExxonMobil Corp., BHP Billiton, and Santos Ltd. has agreed to begin engineering and design on the Kipper gas field development in the offshore Gippsland basin of southeast Victoria.

The field, operated by ExxonMobil's Australian subsidiary, is in 100 m of water about 45 km off the coast. It holds about 620 bcf of gas and 30 million bbl of condensate.

Discovered in 1986, it is the largest undeveloped gas field in the region.

The intention is to bring Kipper gas and condensate ashore for treatment in the ExxonMobil-BHP Bass Strait production facilities at Longford in Victoria. Entry into the system would be via the West Tuna platform.

Kipper straddles the boundary between two permits, so the field has been unitized for development. ExxonMobil and BHP each has 32.5%, while Santos, which bought Woodside's interest in May, has 35%.

ExxonMobil says a final investment decision is expected in 2007. Production could then begin by the end of the decade.