Buru-Mitsubishi JV Moves Nearer to Developing WA's Ungani Oil Field
Buru Energy Limited, a Perth-based oil and gas exploration and production company, advised Wedneday that the Western Australian (WA) Supreme Court has delivered a decision in proceedings CIV 2315 of 2013 involving Buru Energy Limited, Mitsubishi Corporation and Fitzroy River Corporation (Fitzroy) regarding the proper construction of the Canning Basin Royalty Deed.
On April 14, His Honor Justice Mitchell, dismissed Fitzroy’s claim in relation to the royalty payable under the Canning Basin Royalty Deed and confirmed that Buru Energy and Mitsubishi Corporation’s interpretation of the Deed is correct. Fitzroy was ordered to pay the costs of Buru Energy and Mitsubishi Corporation. As a result of this decision Fitzroy will continue to receive a 2 percent royalty based on the value of the petroleum at the well head.
Buru Energy Executive Chairman Eric Streitberg commented:
“We are very pleased that Buru’s interpretation of the royalty deed has been confirmed. Together with the recent execution of the agreements with the Native Title parties this provides a clear path for the development of Ungani.”
“Buru is also close to finalizing its drilling program for the coming dry season and we look forward to adding value for all of our stakeholders.”
Separately, Buru disclosed Tuesday that its joint venture with Mitsubishi will now secure the Production License for its Ungani oil field in WA's Kimberly region after executing a Native Title Agreement with the Yawuru People. The Yawuru People authorized entry into the Agreement at a meeting April 1, and all parties have now executed the agreement.
Under the Agreement, the Yawuru People have agreed to the grant of the production licenses (STP-PRA-004 and 005), required for the commercial development of the Ungani oil field. This agreement is the final one required, and follows the other Native Title agreement recently executed with the Nyikina Mangala and Karajarri Yanja People.
These agreements will now allow Buru Energy and its equal joint venture partner at Ungani, Mitsubishi Corporation, to complete their application for the Ungani Production License from the Department of Mines and Petroleum in WA (DMP), which is expected to be granted in the coming months. The joint venture is currently undertaking the field facility upgrades required to allow the start of commercial production once the Production License and Consent to Operate is obtained from DMP.
12
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension