While low oil prices are creating a lot of cutbacks, the news also followed the Labor Party’s Victorian election victory less than three weeks ago.
“The decision to terminate the joint venture is consistent with our long-standing practise of continually reviewing assets for their contribution to operating and financial objectives,” an ExxonMobil spokeswoman told ICN sister publication ENB.
“We continue to invest in Australia’s oil and gas exploration and development including the $4.5 billion offshore Kipper Tuna Turrum project.”
Gippsland Gas, a subsidiary of unlisted Ignite Energy Resources, has an independently assessed best-case estimate of 3.7 trillion cubic feet of gas of contingent resources and 1.3TCF of best case prospective resources in its wholly owned onshore Gippsland Basin block EL4416 in southeastern Victoria.
The gas resources come from deep lignite seams over the 3800 square kilometre-plus block.
While the previous Liberal state government implemented bans on unconventional exploration in the state, the Labor Party’s election campaign included a promise to hold a 12-month inquiry into CSG and fraccing.