Australia’s energy sector is set for a significant shift as Woodside Energy (ASX: WDS) prepares to take over daily management of ExxonMobil’s Bass Strait assets. This move consolidates Woodside’s position as a dominant force in Australian energy production, expanding its reach from Western Australia to the east coast. Woodside is a leading Australian energy company, operating major projects like the North West Shelf. It is committed to meeting Australia’s domestic energy needs while maximising the value of existing infrastructure.
The agreement will see approximately 600 ExxonMobil staff transfer to Woodside, with the operational changeover expected to be completed in 2026, pending regulatory approvals. ExxonMobil, along with former joint venture partner BHP, established itself as a major gas provider in Australia with the discovery of the Barracouta field in 1965. The company has been operating the Gippsland Basin joint venture for over 50 years.
Woodside’s increased presence in Victoria follows its merger with BHP’s petroleum business in June 2022, which granted it initial access to the Bass Strait fields. Analysts suggest Woodside has the potential to revitalise the Bass Strait assets, especially given declining gas supply to east coast markets. The company has reportedly identified several potential development wells that could deliver up to 200 petajoules of sales gas to the market.
According to ExxonMobil Australia chair Simon Younger, the Bass Strait currently meets approximately 40% of the east coast’s gas demand. Woodside will assume operatorship of the offshore Bass Strait production assets, the Longford Gas Plant, the Long Island Point gas liquids processing facility, and associated pipeline infrastructure.
