ExxonMobil subsidiary Esso Australia has begun drilling at the Turrum Phase 3 project in the Gippsland Basin offshore Victoria to produce undeveloped gas resources in the mature Turrum field in the Bass Strait.
The $221-million investment aims to drill five gas wells in the Turrum and North Turrum fields to supply domestic needs in eastern Australia, utilizing infill drilling and seismic reprocessing to optimize resources remaining in the mature reservoir.
The operational area is tied to the existing Marlin platform in Production License VIC/L03, Reuters reported. Gas will flow by pipeline to the onshore Longford Gas Conditioning Plant which is the major receiving and processing hub for Bass Strait production, as described on ExxonMobil’s website.
Drilling Alongside Decommissioning
ExxonMobil and its partner in the Gippsland Basin joint venture (GBJV), Woodside Energy, commissioned the Valaris 107 jackup rig for the drilling campaign which Esso Australia noted in a post on LinkedIn is “one of the largest east coast gas developments of the decade.”
The rig has been working in the Bass Strait since 2024 in support of ExxonMobil’s decommissioning efforts.
The GBJV is a 50-50 venture between Esso Australia Resources and Woodside Energy (Bass Strait) with Esso Australia designated as operator on behalf of ExxonMobil.
In July 2025, the partners agreed to transfer Esso’s operatorship to Woodside of the following: Bass Strait production assets including the GBJV, the Kipper Unit Joint Venture (KUJV), the Longford Gas Conditioning facility, the Long Island Point gas-to-liquids complex and associated pipeline infrastructure.
ExxonMobil’s Australian Legacy Intact
Expected to close in 2026, the deal, which awaits regulatory approvals, will leave the partner’s equity stakes unchanged. Woodside and ExxonMobil Australia each holds a 50% interest in the GBJV and a 32.5% interest in the KUJV.
The GBJV is Australia’s first major offshore oil and gas development. It has delivered 11 Tcf of gas and 4 billion bbl of oil since 1969. The asset also produces condensate, LPG, and ethane, Woodside noted in a news release announcing the operatorship swap.
Currently, the GBJV delivers about 40% of gas supplied to Australia’s eastern states.
The Turrum Phase 3 project is intended to keep the gas flowing, Esso noted in its LinkedIn post, adding, “The (Turrum Phase 3) project is expected to be online before winter 2027, delivering more gas than any single Gippsland Basin Joint Venture development since West Barracouta.
“Turrum Phase 3 builds on nearly $1 billion in recent investment across the Gippsland Basin—helping ensure it remains the largest single supplier of natural gas to eastern Australia through the end of the decade.”
Sidestepping a Possible Energy Crisis
Australian authorities have warned that the country’s east coast could face a gas shortage from 2027, potentially requiring gas imports because of structural decline of supporting fields and uncertainty surrounding future investments.
“The Turrum Phase 3 project, and the recently approved Kipper 1B project, will unlock additional gas that is needed to avoid future shortfalls,” Liz Westcott, Woodside's executive vice president and chief operating officer for its Australian operations, said in a separate statement.
