MELBOURNE (Reuters) - ExxonMobil Corp (>> Exxon Mobil Corporation) and BHP Billiton (>> BHP Billiton Limited) have agreed to spend about A$400 million (188 million pounds) 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 (>> BHP Billiton plc), 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.

(Reporting by Sonali Paul; Editing by Richard Pullin)