Buru Energy has completed a plan to restart production at Ungani Oilfield project located onshore about 150km east of Broome, Western Australia.
Production at this oilfield was suspended for 18 months due to a global oil price slump, reported The West Australian.
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Buru Energy executive chairman Eric Streitberg said: “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.”
The company will export oil in 80,000 barrel tanks through Wyndham port to South East Asian countries or local markets.
The larger tanks to be used to export oil belong to Wyndham Port operator Cambridge Gulf Limited (CGL).
The decision to export oil via larger ships on spot charter is expected to result in significant economies of scale and commercial benefits. It is also expected to streamline the storage system and help reduce operating costs for the company.
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By GlobalDataStreitberg added: “The plan to commence export through Wyndham commencing in mid-2017 takes advantage of existing infrastructure that was not previously available, with its improved margins and early utilisation.
“The Broome option will continue to be explored, but given the necessity to construct additional tankage and a dedicated oil export pipeline at the port, this option is not available in the short term.”
The company has currently undertaken a tender process for the contract of transporting Ungani oil field crude to Wyndham.
Buru Energy intends to complete some minor modifications at the site before re-commencing production.
The timing to resume production depends on CGL returning the tank from diesel service and the completion of necessary modifications.
Later this year, Buru Energy is expected to install an artificial lift (electrical submersible pumps) at the field to maintain and increase production.
The field initially produced on natural flow at a target rate of 1,200 barrels per day.
This restart is subject to final joint venture and regulatory approvals, along with the allocation of various necessary contracts.
The company's Ungani project is owned through a 50/50 joint venture by Buru Energy and Diamond Resources (Fitzroy).
