July 28, 2008

ExxonMobil to Invest $1.1 Billion in Turrum Field Development

ExxonMobil has announced that its Gippsland Basin joint venture company, which includes its subsidiary Esso Australia, will invest $1.1 billion to develop more than 270 million oil-equivalent barrels from the Turrum field in the Bass Strait, offshore southeast Australia.

The development follows the recent announcement of $1 billion in funding to develop natural gas from the Kipper field, also in the Bass Strait.

Esso Australia is the Turrum field operator and holds 50% interest with BHP Billiton. Esso Australia operates 21 offshore oil and gas production facilities in the Bass Strait, and also operates and holds 32.5% interest in the Kipper Unit joint venture with BHP Billiton and Santos.

Rich Kruger, president of the ExxonMobil Production Company, said: "ExxonMobil continues to be an industry leader in bringing new energy supplies to the market and the Turrum Field development is the latest example. Bass Strait has a long history and a bright future. There are significant oil and gas resources remaining to be produced in the basin."

Esso Australia has produced oil and gas from the Bass Strait offshore fields for nearly 40 years. The Turrum and Kipper developments are among 119 projects in ExxonMobil's portfolio to support the development of more than 24 billion oil-equivalent barrels of energy.

The Turrum field reportedly holds approximately one trillion cubic feet of gas and 110 million barrels (Mmbbl) of oil and natural gas liquids, while the Kipper resource holds approximately 620 billion cubic feet of recoverable gas and 30Mmbbl of condensate-liquefied petroleum gas.