|  |
30 November 2006
Melbourne: Esso Australia Resources Pty.
Ltd., a subsidiary of Exxon Mobil Corporation, today announced that the Kipper
project participants had signed commercial agreements to establish the Kipper
Unit Joint Venture (KUJV) and enter Front End Engineering and Design (FEED).
The KUJV participants are Esso Australia Resources Pty. Ltd (32.5% & operator)
and subsidiaries of BHP Billiton (32.5%) and Santos Limited (35%).
Under the new arrangements, the project participants have agreed on the key
terms and conditions for operating the Kipper development, including the
processing of the gas and the formal establishment of the operator of the KUJV.
ExxonMobil Australia Chairman Mark Nolan noted that the signing of the
agreements was an important project milestone in the development of the field
and one which allows the project to undertake FEED.
The
establishment of the KUJV is a significant step forward for the project and it
allows KUJV participants to progress into the FEED phase of the project,” Mr
Nolan said.
“The decision of venture participants to
establish the KUJV and enter FEED ensures that the development is on schedule
to consider a final investment decision in 2007.
"The Kipper
project has the potential to be one of the largest gas developments to come on
stream in Victoria since the Bass Strait fields were developed by Esso and BHP
over 30 years ago. Kipper gas will underpin future growth in ExxonMobil's gas
sales,” Mr Nolan said.
The Kipper field is located in
100 metres of water, approximately 45 kilometres from Ninety Mile Beach on the
Gippsland coast, and has a confirmed resource of approximately 620 billion
cubic feet of recoverable gas and 30 million barrels of condensate/LPG.
The initial Kipper development concept is based upon the installation of a
number of subsea wells and associated pipelines. The gas and liquids will be
processed using existing Esso and BHP Billiton Bass Strait facilities.
First gas is planned by the end of the decade subject to corporate funding
approvals by each of the Kipper participants.
Media contact:
Rob Young 03 9270 3443 or 0438 080 998.
| |
|
|
|
| |
