Wood secures major maintenance contract with Esso Australia for Gippsland Basin assets

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John Group PLC (Wood) has been awarded a landmark contract by to provide long-term maintenance and shutdown support for the Joint Venture’s operations. This partnership underscores the critical role of Wood in ensuring the efficiency and safety of one of ‘s largest natural gas hubs, with operations commencing in January 2025.

What does the contract entail for Gippsland Basin operations?

The agreement places Wood at the heart of maintenance services for offshore assets in the Bass Strait and onshore facilities at Longford and Long Island Point. The Gippsland Basin, operated by Esso Australia, is a linchpin in Australia’s energy infrastructure, supplying nearly 40% of the natural gas consumed along the nation’s east coast.

Under this new contract, Wood will deliver maintenance solutions aimed at enhancing operational performance, ensuring uninterrupted energy production, and safeguarding the reliability of critical infrastructure. The project’s scope includes scheduled shutdowns to facilitate efficient repairs and upgrades, ensuring optimal asset productivity.

Economic and employment impact

This project represents a substantial boost to Victoria’s economy, with Wood announcing the creation of approximately 250 new jobs in early 2025. The contract’s implementation will not only provide direct employment opportunities but also support ancillary industries in the region.

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How does this contract strengthen Wood’s portfolio in Australia?

Wood’s success in securing this competitive contract reflects its growing influence in Australia’s energy sector. The company has been steadily expanding its portfolio, particularly in operations and maintenance, earning a reputation for excellence in delivering integrated solutions.

Ken Gilmartin, CEO of Wood, highlighted the importance of this collaboration, stating:

“This partnership underscores Esso Australia’s confidence in our expertise and the quality of our delivery. It reflects our commitment to safety, operational efficiency, and a robust long-term relationship with Esso Australia. This contract further cements our position as a trusted partner in Australia’s energy sector.”

This award follows Wood’s recent five-year renewal for brownfield engineering, procurement, and construction (EPC) services across the same Gippsland Basin assets, reinforcing the company’s enduring presence in the region.

Why is the Gippsland Basin critical to Australia’s energy security?

The Gippsland Basin, operated under a 50-50 joint venture between Esso Australia Resources Pty Ltd and Woodside Energy Pty Ltd, is a cornerstone of Australia’s domestic energy supply. As the largest single source of natural gas, the region plays a vital role in meeting the growing energy demand along the east coast.

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The basin’s offshore platforms and onshore facilities collectively contribute to stabilizing energy prices, ensuring supply reliability, and supporting the nation’s transition to cleaner energy sources. With this maintenance contract, Wood aims to bolster the Gippsland Basin’s operational resilience and help secure Australia’s energy future.

What makes Wood a preferred partner for energy infrastructure projects?

Wood’s leadership in delivering high-quality maintenance solutions stems from its focus on integrated operations, safety, and innovation. The company’s extensive experience in managing complex energy infrastructure projects has positioned it as a go-to partner for global energy leaders like Esso Australia.

In addition, Wood’s commitment to sustainability aligns with the broader energy industry’s shift towards decarbonization and operational efficiency. By optimizing performance and minimizing downtime, Wood not only enhances the lifespan of critical infrastructure but also reduces its environmental footprint.

Expert insights on the Gippsland Basin deal

Industry experts have praised Wood’s ability to secure large-scale contracts in highly competitive markets. Commentators note that the Gippsland Basin project will further solidify Wood’s foothold in Australia’s energy landscape, particularly as the country prioritizes energy security amidst rising global demand.

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This contract also signifies a growing trend of energy companies partnering with experienced maintenance providers to optimize resource utilization while reducing operational risks.

Strategic implications for Wood’s investors

Wood’s stock performance has been bolstered by this significant contract, signaling market confidence in the company’s operational capabilities and growth potential. The deal is expected to drive positive sentiment among investors by highlighting Wood’s expanding presence in key energy markets like Australia.

With ongoing commitments to safety and innovation, Wood remains well-positioned to capture further opportunities in the global energy sector, making it an attractive option for long-term investment.


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