OPERATIONS

Ungani's route to market could be out for months: Buru

Field to remain shut-in 

Ungani's route to market could be out for months: Buru

While the company is looking at alternate routes, it said the options so far are "sub-economic" at best. It produces oil from the onshore conventional Ungani oil field in the Canning Basin and ships it from Wyndham. 
 
"As an active operator in the Kimberley for over 15 years, we have witnessed the impact of weather events in the past but nothing on this scale," CEO Thomas Nador said. 
 
"Our thoughts are with the communities impacted by it and we will provide appropriate assistance as we are able."
 
Tropical Cyclone Ellie hit Western Australia's far north coast several days earlier and operations were shut-in and workers evacuated due to flooding. 
 
Towns including Broome, Derby and Noonkanbah have been cut off and residents evacuated by military after heavy rain dumped by ex-tropical cyclone Ellie caused extensive flooding around Fitzroy Crossing.
 
The field and production facility have only sustained minor damage, Buru said. 
 
However the roads and the Fitzroy Crossing Bridge Buru uses to truck oil to the Wyndham port have sustained damage; the company said it is working with Main Roads WA to understand a time frame for bridge repair. 
 
"In terms of our Ungani operations, we are working with the government, industry, and supply chain partners to understand what logistics options are available to us to take Ungani oil to market safely and economically," Nador said. 
 
Buru is down 3.3% today to 9.6c per share. 

 

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