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New oil project opens in the Kimberley


The first oil development in the Kimberley in nearly 30 years was officially opened on 30th July by Mines and Petroleum Minister Bill Marmion. The field 100 kilometres east of Broome in the Canning Basin was discovered in October 2011. It is the first commercial onshore oil production involving Japanese companies to commence production in WA.

Mr Marmion said the Ungani onshore oilfield, a joint venture between Mitsubishi Corporation and Buru Energy, was expected to provide several economic benefits for the Kimberley region. “This project will generate opportunities and benefits for local people, including traditional owners, local businesses, and for the State in general,” the Minister said. “Ungani is an excellent example of how the oil and gas industry can generate positive returns for all sectors of the local community.”

Mr Marmion said the project would be starting production at a rate of about 199 cubic metres of oil a day, or 1,250 barrels a day, rising to a targeted level of 477 cubic metres or 3,000 barrels a day. Oil produced in the Ungani fields is of very high quality with a notably low sulfur content, and stable demand is expected in Asia and the Pacific. The joint venture is seeking to expand sales activities to the oil refiners in mainly Southeast Asia through the MC Group oil trading company, Petro-Diamond Singapore Pte. Ltd.

Mr. Marmion said: “Following on from the success of progressing this project from a new oil field discovery to the current oil production facility, I understand the equal joint venture partners are undertaking an exploration program to expand the oil reserves base, and are confident in the future expansion of the project.”

He added that the project marked a key milestone in the company’s strategy to become a major oil and gas producer in Western Australia’s Kimberley region.

Photo: Buru Energy chairman Eric Streitberg at the Ungani oil field. (Source: