What recent move has Woodside Energy made in Australia?

Woodside Energy will assume operatorship of the Bass Strait assets under a new agreement with ExxonMobil Australia.

Which infrastructure is included in the new operatorship agreement?

The deal includes offshore production assets, the Longford Gas Plant, and Long Island Point facility.

When is the transition of Bass Strait operations expected to be completed?

The handover process is targeted for completion by 2026, pending regulatory approvals.

Woodside Energy Advances Domestic Gas Plans in ExxonMobil Agreement

3 min read | August 01, 2025 06:33 PM AEST | By Team Kalkine Media

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Woodside Energy Advances Domestic Gas Plans in ExxonMobil Agreement — Image source: Shutterstock

Transition of Operatorship in Bass Strait

The company announced it will assume operatorship of the Bass Strait production assets located offshore Victoria. This move is part of a broader transition agreement between Woodside and ExxonMobil Australia, covering key infrastructure such as the Longford Gas Plant, the Long Island Point gas liquids processing facility, and supporting pipeline systems.

Although the equity interests and decommissioning responsibilities remain unchanged for both parties, the operatorship handover positions Woodside to leverage existing infrastructure for further development.

Strategic Gas Development Potential Identified

In its statement, Woodside revealed the identification of four potential development wells within the Bass Strait that could expand domestic gas supply. The agreement is seen as an extension of the company's plan to maximise value from mature assets while supporting Australia’s energy needs.

Management emphasised that the agreement reflects a commitment to reliable domestic gas supply, noting the strategic advantages of integrating operations and infrastructure across the eastern seaboard.

ExxonMobil's Exit from Operational Role

After operating the Gippsland Basin Joint Venture for over five decades, ExxonMobil’s handover of operational duties marks a significant shift. While it retains its investment interest, the operational mantle now passes to Woodside, with the transition also involving the experienced workforce already based in the region.

Woodside has acknowledged that the expertise of the incoming team will play a key role in ensuring operational continuity, while enhancing synergies across its east coast portfolio.

Timeline and Regulatory Conditions

The companies aim to finalise the transition process by 2026, subject to regulatory approvals and other conditions. The agreement is structured to ensure seamless integration, operational handover, and long-term benefits for domestic energy frameworks.

In the broader market context, the announcement coincided with strengthening global oil prices, providing further support to energy stocks during early trade.

Frequently Asked Questions

What recent move has Woodside Energy made in Australia?
Woodside Energy will assume operatorship of the Bass Strait assets under a new agreement with ExxonMobil Australia.
Which infrastructure is included in the new operatorship agreement?
The deal includes offshore production assets, the Longford Gas Plant, and Long Island Point facility.
When is the transition of Bass Strait operations expected to be completed?
The handover process is targeted for completion by 2026, pending regulatory approvals.

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