Introduction Esso Australia, a subsidiary of ExxonMobil Australia, is planning on undertaking a program of work across some of its offshore assets, including those owned jointly by the Gippsland Basin Joint Venture, in 2018 and 2019. This program forms part of Esso’s ongoing investment in exploring domestic

gas development opportunities to ensure that we can continue to meet Australia’s energy needs.

This fact sheet provides high level details about the projects, regulatory requirements and consultation which will be occurring to facilitate information sharing and stakeholder engagement.

Esso offshore projects

Project locations

20m

40m

60m

80m

100m

600m

200m

400m

800m

1200m

Sale

Lakes Entrance

Longford

Snapper

Moonfish Marlin A

TunaWestTuna

Flounder

Halibut

Cobia Mackerel

Blackback

West Kingfish

Bream B

Kingfish B

Kingfish A

Bream A

Perch

Dolphin

Tarwhine

Seahorse

Barracouta

Whiting KipperMarlin B

Fortescue

Turrum

Platforms

Gas Development

Oil Development

Gas

Oil

LPG

Subsea Completion

Key

0 2010

Kilometres

VIC/P70

ShippingSeparationLanes

VIC/P70 drilling program

Cobia Pipeline project

VIC/L1 development

Area to be Avoided

VIC/L1

Well coordinatesBaldfish Latitude 38° 36’ south, Longitude 148° 35’ east

Hairtail Latitude 38° 36’ south, Longitude 148° 31’ east

mitigation measures that reduce these risks to As Low as Reasonably Practicable (ALARP).

Key impacts and environmental risks As part of development of the VIC/P70 Environment Plan, the key impacts and environmental risks of the project will be identified and controls implemented to reduce the risks to ALARP. These include:

Temporary displacement of shipping/fishing The Baldfish and Hairtail wells are located outside the “Bass Strait Area to be Avoided” as defined on marine chart AUS357. Esso will seek to have a temporary petroleum safety zone created around the drill rig will for the duration of the drilling program, to ensure drilling activities can be completed safely and other marine users are protected. Esso will be working with stakeholders, including the Australian Marine Safety Authority, to manage the impact and communicate with marine users.

Drilling fluids and drill cuttings As part of the drilling program, water-based mud (WBM) will be used to remove the cuttings from the wells to be drilled, cool the drill bits and maintain pressure control of the wells. WBM is mostly water and natural clays, with a small amount of low toxicity additives. The drill cuttings will be separated from the WBM and discharged overboard, while the WBM will be recycled and reused. Drill cuttings will settle in the local vicinity of the wells on the sea floor, which is predominantly sandy with limited bottom-dwelling marine fauna.

VIC/P70 drilling programEsso Australia is planning to undertake an exploration drilling program in the VIC/P70 block, approximately 90km off the East Gippsland Victorian coast. The program will involve drilling two exploration wells, known as Baldfish and Hairtail, with the activity planned to commence in mid 2018. The drilling program is expected to last approximately 60 days.

The exploration wells will determine the extent of any gas reserves contained within the field and support any subsequent development. If successful, this development has the potential to bring online much needed new gas supplies from Bass Strait fields, which have been producing for more than 40 years.

Offshore Environment RegulationsEsso is preparing an Environment Plan and associated Oil Pollution Emergency Plan to identify, assess and manage environmental risks for the exploration drilling program. These plans will be submitted to the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), the offshore environment regulator, for review and acceptance in accordance with the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009.

In developing the Environment Plans, Esso will conduct an environmental risk assessment to evaluate environmental risks associated with the activities being planned, and will incorporate prevention and

Other discharges and waste Controls such as hose inspections and creation of bunded areas will be in place to prevent and mitigate the uncontrolled release of fluids to the marine environment. Any waste generated will be managed in accordance with correct segregation, handling and be returned for onshore disposal. Small amounts of residual fluid from cleaning the mud and cement equipment will be discharged overboard.

Hydrocarbon release The VIC/P70 drilling program will be undertaken in a well understood geological area where the target reservoir is gas. This, in conjunction with preventative measures, including the application of appropriate well control barriers, procedures and equipment, means that a well blowout or loss of well control are very unlikely. In the unlikely event of a release, the impact is expected to be localized with no significant shore line impact. Third party oil spill modelling is being conducted with a range of scenarios being investigated which will form the basis of Oil Pollution Emergency Plans. The plans will outline the roles, responsibilities and response strategies to mitigate the impact of a potential spill from drilling activities.

Other projects VIC/L1 developmentEsso Australia is examining options to develop a gas field in block VIC/L1 known as West Barracouta, approximately 6km south west of the existing Barracouta platform. The project is likely to involve the drilling of a number of subsea wells which will be tied back to our existing Barracouta infrastructure in Bass Strait. This project will be undertaken within Esso’s current “Bass Strait Area to be Avoided”.

To support the project ’s development, Esso will be conducting environmental and seabed surveys commencing in early 2018 (duration approximately 20 days) to assess the location of potential well sites and flow line routes. As the project develops, additional consultation with stakeholders will be conducted.

Cobia Pipeline projectThe Cobia Pipeline project will undertake maintenance and repair works on the Cobia pipeline, which runs from the Cobia platform to the Halibut platform in Bass Strait. This project will be undertaken within the existing Bass Strait “Area to be Avoided” and a temporary petroleum safety zone will be implemented to provide protection during the project.

The offshore work for this project is planned to be carried out by a dynamically positioned vessel in late 2018 and will take approximately two weeks.

The key impacts and environmental risks of the VIC/L1 development and Cobia pipeline project will be developed and shared with stakeholders as regulatory documentation is progressed.

ConsultationWe are committed to engaging with the communities where we operate and helping our stakeholders to understand our business. Esso will be consulting with stakeholders potentially affected by these projects through a number of different channels.

This fact sheet provides information to allow stakeholders to make an informed assessment of the possible consequences of the proposed activities to their functions, interests or activities. We will address questions and consider feedback from stakeholders relating to these projects throughout this consultation process.

If you have any specific questions or feedback about any of these projects please contact Esso at consultation@exxonmobil.com.

A face to face session is being planned for 17 November 2017. To register your interest in attending, please RSVP to consultation@exxonmobil.com

About EssoEsso Australia is a subsidiary of ExxonMobil Australia, the country’s largest integrated oil and gas company. Esso’s Longford Plants has processed more than four billion barrels of oil and eight trillion cubic feet of gas since production began in 1969.

We place the highest priority on operating flawlessly in all aspects of our business. All these offshore projects will be managed in accordance with all regulatory requirements, as well as Esso’s Operational Integrity Management System to reduce risks to ALARP. Environment Plans detailing each program of work and how the risks of the program will be managed by Esso will be submitted to NOPSEMA for acceptance.

Esso is continuously striving to improve all aspects of our safety performance including for our people, our processes, security, health, and environmental performance.

For more information about our operations please visit www.exxonmobil.com.au