How Will Buru Energy Benefit from Regaining Full Ownership of the Ungani Oilfield?
Buru Energy Limited
1 1

How Will Buru Energy Benefit from Regaining Full Ownership of the Ungani Oilfield?

Buru Energy Limited (Buru), an Australian oil and gas company, has announced its agreement with Roc Oil (Canning) Pty Limited (ROC) for ROC to withdraw from and assign its 50% joint venture interests in Production Licences L 20 and L 21, which contain the Ungani Oilfield. This agreement will result in Buru assuming full ownership of the Ungani Oilfield, solidifying its position in the industry.

Strengthening Ownership

Following the completion of assignment and transfer documentation and governmental approvals, Buru will officially assume 100% ownership of the Ungani Oilfield with an expected effective date of 30 September 2023. This move reflects Buru's commitment to maximizing value from its assets and consolidating its operations.

Suspension of Operations and Liability

The agreement between Buru and ROC comes after Buru, as the Operator, recommended the suspension of operations at the Ungani Oilfield due to the uncertain availability of the temporary river crossing at Fitzroy Crossing during the upcoming wet season in the Kimberley region (November - April). Buru has prioritized safety and efficiency in its decision-making process.

Under the agreement, ROC will remain liable for its share of costs associated with the near-term staged suspension of Ungani operations.

Story Continues.. after this ad because we need some dollarydoos

Additionally, ROC will also share responsibility for the future decommissioning of all wells located within Production Licences L 20 and L 21, as well as specified restoration and remediation costs. This provides Buru with financial protection and allows them to focus on their strategic objectives.

A Valuable Asset for Shareholders

While preparing for the suspension of production from the Ungani Oilfield, Buru's CEO, Thomas Nador, expressed gratitude for ROC's support as a joint venture partner since May 2018. Despite the circumstances that led to the decision to suspend production, Nador emphasized that Buru will continue to explore opportunities to extract maximum value from the asset, now as the sole owner of the oilfield. This ownership consolidation allows Buru to make independent decisions and pursue strategies that benefit its shareholders.

Looking Ahead

With full ownership of the Ungani Oilfield, Buru Energy Limited is well-positioned to strengthen its presence in the oil and gas industry. The agreement with ROC not only grants Buru complete control over operations but also provides financial support and liability sharing. Buru will continue to prioritize the safe and efficient management of its assets and explore opportunities to maximize value for its shareholders as a 100% owner of the oilfield.

Promote your business on our growing investor platform: Advertise With Us

Like

Reply 123 Share