ExxonMobil cancels sale of Australian upstream assets

ExxonMobil has called off plans to sell its 50pc stake and operatorship in Australia's Bass strait oil and gas fields offshore Victoria, 14 months after offering them for sale. The fields are the largest offshore oil and gas producing fields in east Australia.

"After completing an extensive market evaluation, ExxonMobil has decided to retain its operated Gippsland basin producing assets in Australia," ExxonMobil said. "We believe Gippsland basin and the Kipper unit are more valuable as part of our portfolio and we will continue to operate rather than divest."

The assets comprise ExxonMobil's 50pc stake in 23 offshore platforms and installations in the Bass strait and the associated Gippsland Basin Joint Venture (GBJV) infrastructure. UK-Australian firm BHP put its 50pc stake in the GBJV up for sale in August.

The GBJV partners are developing the West Barracouta gas field, which is expected to start production in 2021.

Gas from the GBJV is processed at the onshore Longford gas plant, which in turn is connected to pipelines that send gas to neighbouring New South Wales, Tasmania and South Australia, as well as large-scale gas consumers in Victoria. Gas from the Longford plant dropped to an average of 703TJ/d (18.8mn m³/d) during January-September. If this is repeated in this year's final quarter, average gas supplies from Longford will fall to their lowest level since the 700TJ/d in 2015.

By Kevin Morrison