PERTH (miningweekly.com) – ASX-listed Buru Energy has completed the restart plan for its Ungani oilfield, in the Kimberley region of Western Australia.
The company on Friday said the restart of the oilfield was subject to final joint venture and regulatory approvals, as well as the award of the various contracts.
“We are delighted to at last be able to get back onto production in a period of reasonable and stable oil prices after one of the biggest wet seasons in the Kimberley for many years,” said Buru executive chairperson Eric Streitberg.
Plans have been revealed for production from the field to be trucked to Wyndham, stored in an 80 000 bl tank and exported to either South East Asia or local markets.
Buru noted that previous oil exports from Wyndham had taken place through a smaller 30 000 bl tank. The larger tank used to restart operations would bring significant economies of scale and commercial benefits through access to larger ships on spot charter, rather than the previously used smaller charter ships, Streitberg said.
“The resumption of export through Wyndham using the larger tank was made possible by the cooperation of the tank owner and the construction contractor, and has given a pathway to profitable oil production at a minimal capital costs.”
He noted that the plan to start export through Wyndham starting in mid-2017 took advantage of the existing infrastructure that was not previously available, with its improved margins and early use.
“The Broom option will continue to be explored, but given the necessity to build additional tankage and a dedicated oil export pipeline at the port, this option is not available in the short term,” Streitberg said.
Production at Ungani was suspended in January 2016, following the deterioration of the oil price.