Buru Energy has entered into an agreement with Mitsubishi Corporation and the State of Western Australia to mutually scrap the State Agreement for the Canning Basin.
The State Agreement was originally executed by the State of Western Australia, Buru Energy, Mitsubishi Corporation and two of its subsidiaries in November 2012 and was subsequently ratified by the Natural Gas (Canning Basin Joint Venture) Agreement Act 2013 (WA) and varied by agreement of the parties dated 1 July 2015.
The State Agreement covers exploration permits EP 371, 391, 428, 431 and 436 (Permits).
The termination agreement will come into operation once it has been ratified by an Act of the Parliament of Western Australia which is expected to occur in 2018. This process was commenced today in the Legislative Assembly of the Parliament of Western Australia.
On termination of the State Agreement, the Permits will remain valid in their current form with EP 371, EP428, EP431 and EP 436 continuing in force until 30 July 2023 and EP 391 continuing in force until 31 January 2024.