Sale of gas field assets is off table

EXXONMOBIL has canned the multi-billion dollar sale of its 50 per cent stake in the Bass Strait gas fields, with prices from potential bidders thought to have fallen well short of expectations.

The US energy giant announced its intention to sell its half share in September 2019, in a move that would have brought an end to a long venture with partner BHP.

However, from the start some suitors saw as a roadblock liabilities likely to run into billions of dollars to clean up the ageing assets.

Exxon said it would now keep the assets on its books, ending the sales process.

“After completing an extensive market evaluation, Exxonmobil has decided to retain its operated Gippsland Basin producing assets in Australia,” Exxon said in a statement yesterday.

“Projects in our portfolio are evaluated for robustness against competition, internal alternative investments and across a range of prices and scenarios. We believe Gippsland Basin and the Kipper unit are more valuable as part of our portfolio and we will continue to operate rather than divest.”

The local arm of ExxonMobil is headed by Nathan Fay.

The decision may now raise doubts over whether BHP will proceed with its own sale after the resources operator signalled it would sell out of its non-operating 50 per cent stake.

BHP said it would assess Exxon’s decision and its own mooted sale.

“This is a complex process and will take time, and we will consider the implications of recent announcements,” it said.

Exxon’s assets up for sale had included offshore oil and gas facilities, along with the Longford and Long Island Point plants in Victoria.