Environmentalists slam Buru Energy’s plans to move forward with Canning Basin gas projects

Environmentalists have slammed Buru Energy’s latest announcement that it will move ahead with its Kimberley gas projects after coming to a new agreement with former joint venture partner Origin Energy. On February 13, Buru Energy announced it would be acquiring Origin Energy’s Canning Basin Joint Venture interests and will continue its investment in the Rafael gas project. With Origin still providing $4 million in funding for seismic testing, Buru will have to pay Origin royalties capped at $34m as the Rafael project meets certain milestones in its operation. It comes after Origin announced in September last year that it would be divesting from its stake in several gas exploration projects in the basin and the Northern Territory Although disappointed with Origin’s divestment, Buru Energy chair Eric Streitberg said it provided a unique opportunity to reset the development and commercialisation strategy for the Rafael discovery. “The original farm-in agreement with Origin provided the funding and the impetus that resulted in the Rafael discovery that has now assumed even more significance given the current focus on the WA and international gas markets,” he said. Buru Energy and its subsidiary Buru Canning will take over Origin’s 50 per cent stake in five exploration permits in the Canning Basin making Buru the sole owner of the EPs. Buru will also acquire a further 60 per cent stake in two other Canning Basin EPs in partnership with Rey Oil and Gas who boast a 40 per cent stake. The acquirements will make Buru the dominant net acreage holder in the basin with more than 22,000sqkm in their permits. But the announcement has been met with criticism from environmental groups who said Buru’s continued exploration into gas extraction in the Kimberley could have catastrophic consequences for the surrounding environment. Environs Kimberley spokesperson Martin Pritchard said Buru’s proposal to establish an offshore gas project in the Kimberley was “outrageous”. “This latest proposal is totally unacceptable,” he said. “The McGowan Government must show its commitment to protecting the region is real and tell Buru this sort of development will not be permitted in the Kimberley.” Calling the situation “madness” Lock the Gate spokesperson Simone van Hattem said if built, the project would industrialise the Kimberley landscape beyond recognition. “Well pads, tracks, pumping stations, and a pipeline network would turn the spectacular landscapes of the region into something that looks like the fracking fields of Texas,” she said. “Buru Energy has already cleared tens of thousands of kilometres of tropical savannah vegetation in the Kimberley just so it could survey for gas.” The formal transfer of titles between Buru and Origin is now under way with the Department of Mines, Industry Regulation and Safety with the process expected to be completed in the second quarter of 2023.