Kipper

Location and Geology

The Kipper field is situated approximately 45 kilometers off the Gippsland coast, specifically near Ninety Mile Beach, in water depths of about 100 meters.

Discovery and Reserves

The Kipper field was discovered in 1986. It is estimated to hold 620 billion cubic feet (Bcf) of recoverable gas and 30 million barrels of condensate and liquefied petroleum gas (LPG).

Project Partners

The Kipper field is operated by Esso Australia Resources, a subsidiary of ExxonMobil, with joint venture partners including BHP Billiton (32.5%) and Santos (35%).

Development Details

• The development of the Kipper field involves the installation of two subsea wells, four coolers, and a manifold. These facilities are tied back to the existing West Tuna platform via a dual 350 mm diameter, 18 km tie-back pipeline and umbilical.
• The project includes the construction and installation of new pipelines, including an 18.1 km long, 350 mm diameter pipeline connecting the West Tuna platform to the Kipper field.
• A riser access tower was installed adjacent to the West Tuna platform to connect the new Kipper pipelines and umbilicals.

Production

• Initial production from the Kipper field was planned to start in 2011 but was delayed due to the need for additional facilities, such as mercury removal and gas conditioning. Production finally commenced in 2016 after the completion of these projects.
• The field is expected to produce 80 million cubic feet per day (MMcf/d) of gas and 10,000 barrels per day (bbl/d) of condensate.

Infrastructure and Processing

• Gas produced from the Kipper field is piped to the onshore facilities at Longford, which include three gas processing plants and one crude oil stabilization plant.
• The Longford Gas Conditioning Plant (LGCP), which processes gas from the KTT fields, was completed in 2016 to enable the products from the Kipper field to meet regulatory requirements.

Recent Developments

• Recently, Esso Australia completed the Kipper Compression Project, which involved the installation of compression facilities on the West Tuna platform. This project was necessary to maintain production levels as the reservoir pressure in the Kipper field declines. The project ensured the continued supply of natural gas to the domestic market, with over 1 million work hours invested to ensure its safe and timely completion.

Economic and Employment Impact

• The KTT project, including the Kipper field, involved up to 1,500 people during the peak construction period and is expected to produce gas sufficient for a city of around one million people for 35 years.
• The project has significant economic benefits, including safeguarding long-term employment and providing indirect benefits to local businesses in the Gippsland area.

Environmental and Regulatory Considerations

• The Kipper field contains higher mercury levels (200-250 parts per billion) compared to the other fields in the KTT project. Therefore, a mercury removal project was undertaken as part of the development to ensure compliance with regulatory requirements.

Overall, the Kipper project is a crucial part of Australia's energy infrastructure, contributing significantly to the country's natural gas supplies and supporting various industries that rely on natural gas.