$1.4 billion Turrum oil and gas project to provide job and energy security

The Premier, John Brumby, today welcomed the $1.4 billion joint commitment by ExxonMobil Australia and BHP Billiton Petroleum to develop the Turrum oil and gas field in the Gippsland Basin.

Mr Brumby said the investment would provide greater energy security for Victoria, as well as ongoing employment for more than 1000 existing ExxonMobil employees.

“Today’s announcement is a $1.4 billion vote of confidence in Gippsland and Victoria,” Mr Brumby said.“Today’s announcement is a $1.4 billion vote of confidence in Gippsland and Victoria.”

“As well as locking in employment for 1000 existing employees, it will also provide as many as 100 jobs through during construction, and significant flow-on benefits for supporting industries and local businesses in Gippsland.

“Construction is scheduled to start in 2009, with oil production expected in 2011 and the first gas from this field coming on stream in 2015.

“This is not only great for industry and our economy, but also for Victorian households, because increased gas supply will help ensure gas prices remain competitive.

“It is expected the Turrum oil and gas field contains more than 110 million barrels of oil and gas liquids and one trillion cubic feet of gas – enough energy to power a city of one million people for 20 years.

“The development of this field builds on the announcement by ExxonMobil Australia to develop the $1 billion Kipper gas field in December last year. The commitment to develop these oil and gas fields shows the investor confidence in Victoria.”

Minister for Energy and Resources Peter Batchelor said the further development of Victoria’s gas supplies also had environmental benefits.

“The spotlight is on our energy sector to meet both our increasing energy needs and environmental expectations and gas forms an important part of the solution, producing significantly less greenhouse gas emissions than brown coal in power generation,” Mr Batchelor said.

“Developing our gas resources, such as Turrum, will help ensure Victoria has a range of reliable and affordable energy sources as we reduce the carbon emissions from our energy generation.”

The Turrum Project will involve the construction of a new platform, Marlin B, with a bridge-link into the existing Marlin A platform in the Bass Strait. Oil and gas will be piped back to Longford using new and existing facilities.