Wood Group Lands Major Long-Term Maintenance Contract with Esso Australia
- 22-Jan-2025 9:45 PM
- Journalist: Thomas Jefferson
John Wood Group has clinched a pivotal long-term maintenance contract with Esso Australia, an ExxonMobil subsidiary, to service its key offshore and onshore assets in the Gippsland Basin, a region critical to Australia's energy infrastructure. This agreement, which began in January 2025, positions Wood as the primary maintenance partner for Esso's extensive operations across the Bass Strait, Longford, and Long Island Point facilities.
The Gippsland Basin, situated off southeastern Australia, has long been a cornerstone of the country’s oil and gas industry, with the Bass Strait alone supplying around 40% of Australia’s east coast natural gas needs. As the country’s largest single source of domestic natural gas, the uninterrupted performance of these assets is crucial for national energy security. The contract will see Wood oversee a wide array of services, including maintenance, asset integrity, and shutdown support, to maximize operational performance and reduce downtime in these vital facilities.
Wood’s role in this significant contract will not only cover the Gippsland Basin’s offshore operations but also extend to the Longford and Long Island Point plants, which serve as major hubs for processing and distribution. By focusing on optimizing operational efficiency, the maintenance services will ensure these assets continue to meet both safety and production targets over the coming years.
Although the contract value remains undisclosed, the deal is being described as a highly strategic win for Wood, reaffirming its reputation as a global leader in asset management for energy companies. The company's proven expertise in maintaining complex oil and gas infrastructure was a key factor in securing the deal, following a competitive tender process. This contract also builds upon Wood’s longstanding relationship with Esso, which was recently renewed through a separate five-year deal for brownfield engineering, procurement, and construction (EPC) services across the same Gippsland Basin assets.
The deal will have significant economic implications, as it is expected to generate about 250 new jobs in Victoria, where many of the maintenance operations will be based. This infusion of employment is a vital boost to the local economy, underlining Wood’s commitment to supporting regional development while fulfilling its role in the Australian energy sector.
Ken Gilmartin, CEO of Wood, expressed his pride in the company’s selection by Esso Australia as a trusted partner for maintaining assets critical to the country’s energy needs. This contract further strengthens Wood's position in the Australian energy market and highlights its capacity to deliver high-quality services at scale, ensuring safe, reliable energy production for years to come.
As Australia continues to rely on its offshore energy resources, Wood’s role in maintaining these key assets will be integral in sustaining the nation’s energy independence and supporting its ongoing transition to a more sustainable energy future.