The Kipper Tuna Turrum project in Bass Strait, offshore Victoria, Australia from Exxon Mobil Corporation has started production. The company has announced that natural gas production has commenced from the Tuna field via two new pipelines. According to the reliable source from the company oil is being produced from the Turrum field through the new Marlin B platform which is operated by ExxonMobil subsidiary, Esso Australia Resources Pty Ltd.
The company source also informs that the $4.38 million Kipper Tuna Turrum project is the largest domestic oil and gas development on the eastern seaboard which aims to secure east Australia’s energy future. According to the company source there is enough energy to power a city of a million people for 35 years.
Richard Owen, the chairman of ExxonMobil Australia admits that with the development of Australia’s natural gas resources that is going to yield significant environmental benefits, the country would be able to get natural gas is cleaner-burning. It will not only reduce environmental problems but also generate electricity without adding to carbon dioxide emissions.
He says that electricity generation by natural gas can reduce carbon dioxide emission by up to 60 percent. Reportedly, the project has delivered a significant direct impact on the Gippsland and Victorian economies as it generates work for local suppliers and contractors. Even Richard Owen agrees for it when he says that 1,300 full time jobs were sustained during the construction and installation phase.
Maintain current gas production
According to the company sources production from the Kipper Tuna Turrum project is expected to help maintain current gas production levels from Bass Strait. Interestingly, Bass Strait has been in production for four decades now. However, it will take nearly three years for Kipper production come on line.
ExxonMobil Down as Oil Prices Still Keeping Low
Lower oil prices are pulling ExxonMobil as according to reports oil prices drop on increasing stockpiles around the world are causing losses to oil companies. U.S. oil prices dropped yesterday as the American Petroleum Institute estimated that crude-oil inventories in the nation climbed by 3 million barrels last week.
The trend continued today and oil prices dropped further as the report from the Energy Information Administration came in where it said that U.S. stockpiles, excluding the Strategic Petroleum Reserve, increased by 5.2 million barrels to 379.8 million barrels which is a 10-year seasonal high.
To contact the reporter of this story: Jonathan Millet at John@forexminute.com