Buru Energy and ROC Oil will review operations at their Ungani oilfield in WA’s Kimberley after consultation with Main Roads WA over heavy vehicle traffic access impeded by weather damage.
Buru Energy and ROC Oil will review operations at their Ungani oilfield in WA’s Kimberley after consultation with Main Roads WA over heavy vehicle traffic access impeded by weather damage.
ASX-listed Buru and Chinese-owned project operator ROC produce oil from the Ungani field, around 80km east of Broome, and ship it to refineries in South East Asia after transporting it by road to an 80,000 barrel storage tank at Wyndham.
Production was suspended from early January to mid-May after ex-Tropical Cyclone Ellie damaged sections of the Great Northern Highway and the Fitzroy River bridge at Fitzroy Crossing, but restarted when Main Roads WA constructed a temporary low-level heavy vehicle crossing of the river.
Unseasonable rain hit in early July, closing the temporary crossing and preventing transport of oil from Ungani to the tank Wyndham.
Production initially continued but was suspended on July 5, according to Buru, after onsite oil storage facilities hit capacity.
River levels have since receded and operations are up and running, with the JV on track for planned lifting of oil from the tank at Wyndham to buyer BP Singapore in August.
The company expects the lifting to significantly increase its cash position. No oil liftings took place in the March quarter as a result of the weather damage.
However, Buru also revealed it would review ongoing operations after consultation with Main Roads.
“In discussions with Main Roads WA, Buru has been made aware that the forward plan for the heavy vehicle crossing of the Fitzroy River during the upcoming wet season is yet to be finalised, with current low-level crossings likely to be unavailable,” the company said in a statement to the ASX.
“With a permanent bridge across the Fitzroy River not expected to be operational until mid-2024, the Ungani joint venture will review its ongoing operations and logistics, including safety and the suitability of river crossing options proposed in due course by Main Roads WA.”
The Kimberley wet season typically runs from November to April.
At the end of March, the state government awarded a contract to construct a new Fitzroy River Bridge to newly formed Fitzroy Bridge Alliance, incorporating Georgiou Group, BMD Constructions and BG&E.
Construction is underway on the project, working towards the state’s expected delivery date of mid-2024.
Recent weather events in the Kimberley have highlighted the fragility of freight networks, a topic explored in depth in April by Business News.
Buru shares were trading around 4 per cent lower at 11.30 today.
