ExxonMobil, BHP to spend US$290m to replace Australian pipeline

[MELBOURNE] ExxonMobil Corp and BHP Billiton have agreed to spend about A$400 million (S$406 million) to replace a pipeline that transports crude oil and condensate between two of their sites in Australia's Victoria state, ExxonMobil said on Friday.

The project comes at a time when Australia is counting on infrastructure investment to help offset a bust in mining and energy projects.

ExxonMobil and BHP Billiton, 50-50 joint venture partners in the Gippsland Basin, will be replacing a 187 km (116 mile) pipeline, with construction expected to generate around 500 jobs at its peak.

Construction is expected to begin in late 2015, pending regulatory approval.

REUTERS