The Kipper venture participants include Esso Australia Resources (operator, with 32.5 per cent) and subsidiaries of BHP Billiton (32.5 per cent) and Santos Limited (35 per cent).

ExxonMobil Australia Chairman Mark Nolan said the decision by the Kipper participants to approve the project was a critical step forward in supplying additional natural gas to southeast Australia, thus expanding long term energy supply, as well as delivering economic benefits to the local economy.

The Kipper resource holds approximately 620 billion cubic feet of recoverable gas and 30 million barrels of condensate/LPG – enough energy to power a city of a million people for 15 years.

“While the new natural gas supply from Kipper will help meet growing energy demand across eastern Australia, it is also important from an environmental perspective,” Mr Nolan stated.

“In fact, natural gas produces up to 70 per cent fewer emissions than coal in power generation and uses up to 80 per cent less water.

“This fact is significant, as we face the challenge of meeting the growing need for energy while managing greenhouse gas emissions. The development of Kipper’s significant natural gas resource can only help us better meet this challenge.”

“The billion dollar Kipper Project will help underpin the jobs of the 1,000 people currently employed through the ExxonMobil Group of Companies in Gippsland while at the same time delivering significant indirect economic benefits throughout the local economy,” Mr. Nolan said.

Mr Nolan acknowledged the strong support from the Commonwealth, Victorian and local governments.

The Kipper field will be developed by the installation of a number of subsea wells, piped back to existing infrastructure at Longford. Construction will commence in the second half of 2008 and first gas is expected in 2011, subject to finalisation of construction contracts.

The Kipper field is located in 100 metres of water, approximately 45 kilometres from Ninety Mile Beach on the Gippsland coast of Victoria.