Native title deal for Buru's Ungani

Buru Energy has announced the signing of a native title agreement with the Nyikina Mangala and Karajarri Yanja people, an important step in moving to full production at its Ungani oil project joint venture with Mitsubishi.

Buru believes the deal will deliver significant financial benefits for the traditional owners of the site and has committed to managing cultural, heritage and environmental matters in the native title areas.

The Yawuru people, a third group of traditional owners, will vote on an indigenous land use agreement at a meeting scheduled for April 1 2015.

The joint venture will then apply for a production licence from the Department of Mines and Petroleum, subject to the approval of the Yawuru people.

Further production will require an approved safety case, a field development plan and a reservoir management plan, all of which are in advanced stages of preparation, Buru said.

Buru executive chairman Eric Streitberg said the native title agreement was a historic event for the Kimberley region.

“This is the first native title agreement for onshore oil production in the Kimberley,” he said.

“It represents a major step forward in the environmentally and culturally appropriate resource development of the Kimberley.

“I would like to thank the Nyikina Mangala and Karajarri Yanja people for their commitment to this agreement.

“We look forward to working closely with them to ensure that the traditional owners continue to benefit from the ongoing development of the Ungani.”

Oil was discovered at the Ungani site, which is about 150 kilometres east of Broome, in October 2011. The Ungani project has been producing oil under an extended production testing regime since December 2013.

The testing phase is now nearing completion. Buru intends to shut-in the field and perform the necessary facility upgrades to allow for full field production.

Buru has stated that planning for access to the port of Broome for oil export has also been progressed. Exports to date have required trucking the oil to the port of Wyndham.

The Ungani project is one of several oil and gas ventures undertaken by Buru in the Kimberley region.

Buru’s fracking program has generated opposition from environmental groups such as Lock the Gate, which has raised concerns over potential impact on groundwater, air quality and biodiversity.

In June 2014, Aboriginal leader Wayne Bergmann told Business News that Kimberley residents were concerned about the possible consequences of fracking. Mr Bergmann was also critical of Buru and Mitsubishi.

In January 2015, Business News reported that the Department of Mines and Petroleum had cleared Buru over allegations of a gas leak at its Yulleroo project near Broome.