Exxon, BHP to fully develop Turrum field

The Gippsland Basin Joint Venture, which includes ExxonMobil subsidiary, Esso Australia, and BHP Billiton, will invest $1.1 billion to develop more than 270 MMboe from Turrum field in the Bass Strait, offshore southeast Australia.

Offshore staff

IRVING, Texas -- The Gippsland Basin Joint Venture, which includes ExxonMobil subsidiary, Esso Australia, and BHP Billiton, will invest $1.1 billion to develop more than 270 MMboe from Turrum field in the Bass Strait, offshore southeast Australia.

Esso Australia, the Turrum field operator, and BHP Billiton each hold 50% interest.

The Turrum field is located 42 km (26 mi) from shore in about 60 m (197 ft) of water. The field holds approximately 1 tcf (28 MMcm) of gas and 110 MMbbl of oil and natural gas liquids.

The development will have a new platform, Marlin B, linked by a bridge to the existing Marlin A platform. Marlin A will be upgraded to accommodate the bridge and new equipment. Construction is anticipated to begin in 2009.

The platform will process additional oil production and gas cycling, which will be piped back to existing processing facilities at Longford. Oil production is expected in 2011, and first gas sales are expected to begin in 2015 at approximately 200 MMcf/d (5.7 MMcm/d).

The development follows the December 2007 announcement of $1 billion in funding to develop natural gas from the Kipper field, also in the Bass Strait. The Bass Strait offshore fields have been produced for nearly 40 years.

Esso Australia operates 21 offshore oil and gas production facilities in Bass Strait and also operates and holds 32.5% interest in the Kipper Unit JV, with BHP Billiton and Santos Ltd.

The Kipper resource holds approximately 620 bcf (17.6 bcm) of recoverable gas and 30 MMbbl of condensate/liquefied petroleum gas. The Kipper field will be developed by the installation of a number of subsea wells, piped back to existing infrastructure at Longford. Construction will begin in the second half of 2008, and first gas is expected in 2011.

07/25/2008

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