Buru Energy Ltd (ASX:BRU) has assured the market its Ungani oil production and operations have only been temporarily impacted by ex-Tropical Cyclone Ellie, which has ravaged the central and west Kimberley region.
On January 5, the company announced that operations at the Ungani Production Facility (UPF) had been suspended and personnel evacuated from the field due to the escalating flooding event.
Inspection confirms no damage
The company has now had the opportunity to inspect the UPF and the Ungani access road, around 100 kilometres east of Broome, and can confirm they have only sustained minor flooding and no damage to plant or equipment.
That said, the broader impact of the weather system on roads and regional infrastructure has resulted in the oil transportation road route to the export facility at Wyndham Port being cut off.
There has reportedly been widespread damage to roads and infrastructure, most notably structural damage to the bridge at Fitzroy Crossing.
Buru is in contact with Main Roads WA to understand repair or reinstatement timeframes for the bridge, and potential plans for any temporary crossing arrangements at Fitzroy Crossing.
The Willare Bridge has also been affected by floodwaters, though there are no reports of damage at this time.
Production impacted by transport
Thinking ahead, Buru has assumed that the full restoration of heavy traffic river crossing infrastructure at Fitzroy Crossing – the company’s primary economic transportation route to market – will take some months and expects oil production to be impacted accordingly.
Buru is investigating alternative oil transportation routes and methods, but initial indications are that these are likely to be subeconomic at this stage.
Buru CEO Thomas Nador commented: “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.
“Our thoughts are with the communities impacted by it and we will provide appropriate assistance as we are able.
“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.”