Woodside Energy (ASX:WDS) will take over operatorship of the Bass Strait gas assets following an agreement with ExxonMobil Australia. This marks a significant shift in control of a key energy source for Australia’s east coast. The deal grants Woodside operational control of crucial offshore Bass Strait production infrastructure. This includes the Longford Gas Plant, the Long Island Point processing facility, and all associated pipelines. Woodside is an Australian energy company focused on the exploration, development, and production of oil and gas. ExxonMobil Australia is a subsidiary of the global energy giant ExxonMobil, with operations across the energy sector.
Ownership stakes in the gas assets and decommissioning responsibilities will remain unchanged. Both Woodside and ExxonMobil will maintain their existing equity positions in the Bass Strait venture. The transition aims to streamline operations and enhance efficiency in the region’s gas production.
Woodside anticipates the move will unlock up to $US60 million in synergies through economies of scale. This could potentially enable the development of four new wells, delivering up to 200 petajoules of gas into the domestic market. However, this is subject to further technical assessments and final investment decisions. The takeover of operations is expected to have positive implications for domestic gas supply.
As part of the handover, ExxonMobil will transfer its Bass Strait workforce to Woodside. Completion of the agreement is expected in 2026, pending the necessary regulatory approvals. Natural gas sourced from Bass Strait currently supplies approximately 40 per cent of the gas demand on Australia’s east coast.
