Gippsland gas sale to Origin

23 April 2008

Melbourne – ExxonMobil Australia today announced that its subsidiary, Esso Australia Resources Pty Ltd along with BHP Billiton, has signed a formal agreement for the sale of gas to Origin Energy.

The sale agreement will provide at least 250 petajoules (PJ) of Gippsland gas to Origin Energy over 10 years starting in late 2009. The gas is earmarked for potential opportunities in South Eastern Australia, including power generation.

Commenting on the sale, ExxonMobil’s Director of Gas Marketing, James Hunsaker said that the sale announcement was a strong demonstration of the long-term competitiveness of the Gippsland gas business.

“With ~ 7 TCF of gas remaining, Gippsland Gas is well placed to meet the increasing energy demands of South - Eastern Australia,” Mr Hunsaker said.

“The sale affirms the increasing demand for clean burning natural gas, which can produce up to 70 percent fewer emissions than coal in power generation and use up to 80 percent less water,” he said.

Esso Australia Resources Pty Ltd operates the Gippsland Basin Joint Venture on behalf of a 50-50 joint venture with BHP Billiton Petroleum (Bass Strait) Pty Ltd.

ExxonMobil, is also continuing to enhance its gas business by progressing major new gas projects such as Kipper.


Media Contact:  Gemma Allman 03 9270 3537 or Rob Young 0438 080 998