Woodside taps Bass Strait gas potential after profit boost

WOODSIDE Energy has turned up the heat on its Bass Strait operations after reporting a massive half-year net profit after tax of AUD$2.4 billion and locking in day-to-day operational control of ExxonMobil’s Gippsland assets.

Woodside’s expanded footprint into the iconic Bass Strait field was a major highlight of the company’s half-year financial and operational results. The energy giant officially assumed full operational control from ExxonMobil (Esso Australia) on July 1.

The successful handover included direct management of both the Gippsland Basin Joint Venture (GBJV) and the Kipper Unit Joint Venture (KUJV). This strategic transition places Woodside at the helm of a crucial energy hub.

“In July, Woodside assumed operatorship of the Gippsland Basin assets, creating greater flexibility for future development opportunities while reinforcing our commitment to supporting energy security in the eastern Australian domestic market,” the company stated.

The Bass Strait infrastructure produces gas through a complex, interconnected network of offshore platforms, subsea pipelines, and onshore processing facilities. During the first half of 2026, Woodside’s share of production from Bass Strait reached 8.4 million barrels of oil equivalent (MMboe).

This output represented an 8 per cent decrease compared to the first half of 2025. The drop was primarily driven by scheduled maintenance programs that reduced available capacity, alongside temporary shifts in domestic gas demand.

Despite the temporary production dip, Woodside is now aggressively moving forward with critical infrastructure upgrades to boost long-term supply. In the first half of 2026, the company successfully completed the drilling of five production wells under the Turrum Phase 3 Project.

This project aims to deliver substantial gas volumes from the Turrum and North Turrum fields directly to the strained eastern Australian domestic market by the first half of 2027. The project is further supported by ongoing topsides modifications to the Marlin B platform.

Looking ahead, Woodside is progressing the technical maturation of four additional potential development wells. These assets hold the potential to deliver up to 200 petajoules (PJ) of sales gas to the domestic market, throwing a lifeline to local industries facing winter supply shortfalls.

As eastern Australia continues to navigate a volatile energy transition, Woodside’s aggressive development plan in the Gippsland Basin positions the operator as the primary guardian of the region's immediate energy security.

Key milestones in Bass Strait have included completing well plug and abandonment (P&A) work on the West Kingfish and Cobia platforms with operations now shifted to the Halibut and Tuna platforms.

While decommissioning ramps up Woodside is also evaluating future options.

The company intends to develop new opportunities exclusively through existing Bass Strait infrastructure. However, final investment decisions remain contingent on the commercial impacts of the Federal Government’s domestic gas reservation scheme.

To support this transition Woodside’s VP of Decommissioning, Richard Perry recently led community information sessions across Gippsland towns like Leongatha and Foster to engage with locals with deep generational ties to the local infrastructure.

Many of the people Woodside spoke to had longstanding connections with the regional assets including some former contract divers and construction workers who helped assemble the Tuna, Mackerel, West Kingfish, Flounder and Bream platforms at Barry Beach Marine Terminal decades ago.

Woodside has also opened applications for its Community Grants program offering funding of up to $5,000 to support local clubs, organisations and initiatives that boost community wellbeing.

The grants program specifically targets community-led projects within the Gippsland and Mornington Peninsula regions. A prime example of the program's impact includes support for the Better Life for Foster Kids PJ Day initiative.

Community groups that have an innovative idea or require extra financial support to deliver local capacity-building projects are highly encouraged to apply.