Australian oil and gas giant Woodside Energy will take the reins of the Bass Strait oil and gas assets from ExxonMobil, marking the end of the US giant's almost 60-year presence in Australia and triggering one of the world's largest offshore decommissioning efforts.
In recent months ,Exxon has been shifting focus to higher-growth regions as part of a global streamlining drive led from its Houston headquarters. With the deal set to close this week, Woodside will take control of offshore production, the Longford gas plant, Long Island Point facility and key pipelines. Esso Australia will be retired, while the Mobil brand will remain.
About 600 ExxonMobil staff will transfer to Woodside as part of the deal, which maintains the current equity structure but shifts operational responsibility. Completion is expected in 2026, subject to regulatory approvals.
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"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," ExxonMobil Australia Chair Simon Younger said.
Woodside expects to realise more than US$60 million in synergies through economies of scale, net of transition and integration costs. The company has also identified four potential development wells that could deliver up to 200 petajoules of sales gas, reinforcing its strategic position on the east coast.
"Taking operatorship of Bass Strait demonstrates Woodside's continued commitment to meeting Australia's domestic energy demand while maximising the value of existing infrastructure," Woodside EVP and COO Australia Liz Westcott said.
The Bass Strait assets currently supply around 40% of Australia's east coast domestic gas demand, with all output committed to the local market.
