where to from here?, page-16

Hi Bigpete

I agree. I think JPP would be a bonus for Buru, but it would be nearly as profitable to build a pipeline to Karratha I reckon, and not nearly as upsetting for anyone interested in maintaining the pristine state of coastline in the Broome area.

I would say that it is even possible that even Buru management and staff have qualms about building JPP. They have taken pains to distance themselves from it for the past couple of years.

And it would seem that Shell do not want JPP, preferring the floating facility (presumably Cyclone-proof), so that is something of a problem for the Browse JV. I'm not holding out much hope that the JV will make the FID before the end of June, but I still reckon the pipeline will be a reasonable alternative and easier to sell to boot.

Anyway, we'll know by the end of June. They pretty much have to make the FID by the end of June, otherwise they have to go through the whole legislation/approval process again, which will apparently add a couple of years to the build date.

As I see it, in the medium term, Buru will likely be fast-tracking the Ungani Export facility development, and drilling as many holes as they can in the Ungani area to maximize oil production which can be brought on line much quicker than the gas. Once they have the cash flow trending positive, the gas will be a lot easier to deal with in the financial sense.

Phil