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.
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