Exploration & Production

Exxon’s new Aussie play unlikely to ease local market

Exxon has locked down a deal for new resources in Victoria, but they may not be enough to sate the struggling domestic market Exxon has locked down a deal for new resources in Victoria, but they may not be enough to sate the struggling domestic market.
By Sally Bogle 10 August 2017 0 27129
Exxon’s Altona Refinery in Victoria. (ExxonMobil Australia)

ExxonMobil has acquired what could be a massive gas resource in Victoria’s Gippsland Basin from US explorer Liberty Petroleum, but the deal may not ease prices or supply on the domestic market.

In title transfer documents lodged with the National Offshore Petroleum Titles Administrator, Esso Australia, Exxon’s Australian subsidiary, said it will spend A$130 million (US$102 million) on three exploration wells across 31 blocks in the Bass Strait’s Dory permit up to 2020, plus A$90 million on studies. This implies any gas from the play is unlikely...