Woodside Energy takes operating control of Bass Strait gas assets
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The news: Woodside Energy has agreed to assume operatorship of the Bass Strait gas assets from ExxonMobil Australia, giving the oil and gas giant control of production infrastructure responsible for 40% of Australian east coast domestic gas demand.
The numbers: Woodside expects the move to result in USD60 million ($92 million) in synergies from the Bass Strait, after deduction of transition and integration costs.
The company also said the agreement creates flexibility to realise future development opportunities, with four potential development gas wells already identified. These could potentially deliver a combined 200 petajoules of gas into the market.
The context: The deal will see Woodside take operational control of the offshore production infrastructure on the Bass Straight, which separates Tasmania from the southeastern coast of mainland Australia.
The assets include the Longford Gas Plant, the Long Island Point gas liquids processing facility, and associated pipeline infrastructure.
Woodside and ExxonMobil's equity interests in the assets and decommissioning plans and provisions remain unchanged. Completion of the deal is expected in 2026, pending regulatory approvals.
The source: ASX
