BHP and ExxonMobil Agree to Spend AU$400 Million on Pipeline Replacement

Mining Weekly reported that BHP Billiton (ASX:BHP,LSE:BLT,NYSE:BHP) and joint venture partner ExxonMobil Australia will spend AU$400 million to replace a 187 kilometer pipeline in Victoria.
As quoted in the market news:

ExxonMobil said on Friday that the pipeline would allow the continued safe delivery of crude oil and condensate and ensure that natural gas from offshore Gippsland operations continued to flow to Australia households and businesses.
Both BHP and ExxonMobil hold a 50% interest in the Gippsland Basin JV, with ExxonMobil subsidiary Esso Australia Resources acting as the operator. Pending regulatory approval, the construction of the replacement pipeline is expected to begin in late 2015.
“With an approximate project cost of A$400-million, the replacement pipeline represents another significant investment in the continuation of our Gippsland operations, which have provided crude oil, condensate, LPG and natural gas to the Australia market since operations began in 1969,” said ExxonMobil Australia chairperson Richard Owen.
It was anticipated that, at its peak, the project would generate approximately 500 jobs, as well as deliver additional indirect employment opportunities.

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