Exxon Shelves Sale of Oz Bass Strait Stake

ExxonMobil has shelved a plan to sell its stake in Bass Strait oil and gas project in Gippsland basin off the Australian state of Victoria, a spokesperson from Esso Australia, ExxonMobil’s local unit, told NGW via email on November 30.

“After completing an extensive market evaluation, ExxonMobil has decided to retain its operated Gippsland basin producing assets in Australia, the spokesperson said. “Projects in our portfolio are evaluated for robustness against competition, internal alternative investments and across a range of prices and scenarios.”

It would appear that the offers the company received for the asset did not meet expectations. “We believe Gippsland basin and the Kipper unit are more valuable as part of our portfolio and we will continue to operate rather than divest,” the spokesperson said.

BHP owns 50% stake in the project while Exxon owns the remaining 50%. The US major put its stake up for sale earlier this year. BHP is also planning to sell its stake in the project, it said in August.