Kipper

Location

The Kipper Unit straddles VIC/L25 permit and VIC/L9 permits, Gippsland Basin, in the coastal waters of Bass Strait, offshore south-east Victoria. 

Participants

Santos – 35%
Esso Australia – 32.5% (operator)
BHP Billiton – 32.5%

Project Overview

The Kipper field was discovered in 1986, and sanctioned in December 2007. When developed, gas from Kipper will be produced from four subsea wells via a local subsea manifold tie-in point, separately operated by the Gippsland Basin Joint Venture. From there, the gas will be transported via the existing West Tuna platform for processing at the onshore Longford gas plant.

Following start-up, Santos will lift 70% of the gas production, which is twice its working interest, for a period of 4 years.

The project will be progressed in two major steps: Stage 1A: Initial Kipper gas development via two subsea gas wells and four subsea coolers; Stage 1B: 2014 – a further two Kipper subsea gas wells; Stage 2: 2016 onwards – new gas compression services at Gippsland Basin Joint Venture facilities.

Current Status

At the end of 2010, drilling and completion of the Kipper wells was complete as was fabrication of the subsea equipment and umbilicals. The Gippsland Basin Joint Venture is undertaking a comprehensive review on the non-Kipper related facilities, including the installation of mercury removal facilities, as part of the integrated Kipper Tuna Turrum project. The scope and schedule for the works required to deliver Kipper gas is under review by the operator. Additional works will be conducted by the Gippsland Basin Joint Venture.

Progress to date requires review of scope and schedule with the operator informing the joint venture that first gas will be deferred beyond previous expectation of the first half of 2012. 

First Production

Under review.