Kipper Tuna Turrum on Track in Victoria, Despite Shutdown

---

Researched by Industrial Info Resources (Perth, Australia)--The Cobia Offshore Oil Wellhead Platform was shut down unexpectedly last week after platform staff reported a possible spill. The platform will remain inactive until an investigation is conducted to determine the cause of the "sheen" observed by staff. The platform sits approximately 45 miles (70 kilometres) offshore, south of the small town of Lakes Entrance in eastern Victoria, and is one of more than a dozen offshore platforms involved in the Kipper Tuna Turrum Project.

The multi-billion dollar Kipper Tuna Turrum Project is the product of two joint venture projects.

The Kipper venture participants include Esso Australia Resources Pty Limited (32.5% ), BHP Billiton Petroleum (Bass Strait) Pty Limited (32.5%) and Santos Limited (35%). Esso Australia Resources Pty Limited is a subsidiary of ExxonMobil Australia Pty Limited (NYSE:XOM). The Kipper Gas Field holds approximately 620 billion cubic feet of recoverable gas and 30 million barrels of condensate.

The Turrum project is a part of the Gippsland Basin Joint Venture, in which Esso Australia Resources Pty Limited and BHP Billiton Petroleum (Bass Strait) Pty Limited (NYSE:BHP) each have a 50% interest. The Turrum field holds approximately 1 trillion cubic feet of gas and 110 million barrels of oil and gas liquids.

The Tuna reservoir, which has been producing oil for many years, has been further developed by the Gippsland Basin Joint Venture in order to increase supply to the Kipper Tuna Turrum project. Existing West Tuna facilities have been converted and new pipelines are now used to deliver product into the existing gas system.

The three oil and gas fields hold enough energy to power a city of 1 million people for about 35 years. The first commercial delivery of oil from the project is expected by the end of the year. Although gas production is anticipated to commence by mid-2014, it will not be fully utilized until the Longford Gas Conditioning Plant is complete in 2016.

The current Longford Gas Processing Plant, which has been in operation since 1969, is not equipped to handle the chemical makeup of gas produced at Kipper Tuna Turrum. Consequently, a gas-conditioning plant, adjacent to the existing plant, is under construction in order to remove the carbon dioxide present in the gas before it is introduced to the processing plant.

Despite the setback of a shutdown on the Cobia Platform, the overall Kipper Tuna Turrum project remains on track for completion

View Project Report - 300094242 300012424

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.