The two projects are worth almost $3 billion dollars and are expected to deliver around 200 new jobs during the construction phase.

Esso Australia chairman John Dashwood said the Turrum and Kipper projects were a key step towards meeting eastern Australia's long-term energy needs.

"The Turrum field alone holds approximately one trillion cubic feet of gas and 110 million barrels of oil and gas liquids - which is enough energy to power a city of a million people for 20 years,'' he said.

"Developing our natural gas resources has significant environmental benefits as natural gas produces up to 70 per cent fewer emissions than coal in power generation and uses up to 80 per cent less water.

"We estimate that there is still around seven trillion cubic feet of gas still to be produced, and we're confident that means we have over 30 years of gas remaining in Bass Strait.''

Gippsland MHR Darren Chester joined Mr Dashwood inspecting the progress off-shore last week.

"The Kipper gas project will see a mobile semi-submersible drilling rig installed near the West Tuna platform in Bass Strait,'' he said.

"It is expected drilling of the Kipper wells could commence early next year."

More recently Esso Australia announced the $1.4 billion Turrum Project, which will see construction of a new platform to be known as Marlin B linked to the existing Marlin A platform.

Marlin B will process additional oil production and gas, which will be piped back to existing facilities at Longford.

There are currently three gas plants and a crude oil stabilisation plant at Longford.

Mr Chester said in the long-term, the additional gas being piped from the Turrum gas fields would require a new gas conditioning plant to be built at Longford.

"The Turrum project is expected to create up to 100 additional jobs during the construction phase, which involves building a new Marlin B platform and linkage bridge as well as additional accommodation facilities on the existing Marlin A platform,'' he said.

Construction of the Marlin B platform has already begun, and installation of the platform will begin in 2010, with first gas sales expected from 2015.