EXXONMOBIL subsidiary, Esso Australia Resources, today announced 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.
Drilling is expected to commence in early 2010, and is expected to continue for three to six months.
ExxonMobil’s Director of Gas Marketing, James Hunsaker, said the Kipper project provides a new supply source to meet the growing demand for cleaner-burning natural gas currently being experienced across eastern Australia.
He adds that the Kipper project demonstrates that Bass Strait has a long-term future.
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.