A Woodside Energy Group (ASX:WDS) subsidiary, along with ExxonMobil's Esso Australia Resources unit and MEPAU A, will invest nearly $200 million in the Kipper 1B project in the Gippsland Basin offshore southeast Australia, according to a Monday statement from Esso Australia.

The project, backed by Woodside Energy (Bass Strait), will bring additional gas supply from the Gippsland Basin, per the statement. It will use a jack-up rig to drill and install one subsea well into the Kipper field.

Drilling is slated for launch later in the year.

Woodside Energy Group's shares were up almost 1% in recent Tuesday trade.