Canning Basin agreement to be terminated
14 December 2017
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State Agreement for onshore gas project to be terminated by mutual agreement
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Joint venture parties to await outcome of independent inquiry into fracking
WA Government: The Western Australian
Government has introduced legislation into State Parliament to terminate
a State Agreement governing natural
gas exploration and potential
production in the Kimberley's Canning Basin area.
The State Government,
Mitsubishi Corporation and
Buru Energy have
mutually agreed to terminate the Natural Gas (Canning Basin Joint
Venture) Agreement Act 2013.
The purpose of the original State Agreement was to provide enhanced
certainty of tenure over five exploration permits in the Canning Basin,
with Mitsubishi and Buru intending to jointly develop a domestic
gas
project.
Earlier this year, the companies restructured ownership of the
exploration permits covered by the State Agreement and intend to proceed
separately with projects in the region.
The Termination Agreement allows for Mitsubishi and Buru to retain
ongoing security of their tenure. The companies have agreed to await the
outcome of the independent scientific inquiry into hydraulic fracture
stimulation.
No fracking will be conducted while the fracking moratorium is in place.
Comments attributed to Premier Mark McGowan:
"The State Government appreciates there is a level of community concern
around fracking in WA, which is why we are commissioning an independent
scientific inquiry, and have implemented a State-wide moratorium.
"We have been working closely with Mitsubishi Corporation and Buru
Energy to ensure compliance with the moratorium, while awaiting the
outcome of the review.
"The termination of this State Agreement allows both companies to pursue
their own commercial interests."
--ENDS--
Source: Western Australia Government - www.mediastatements.wa.gov.au
Contact: Premier's office - 6552 5000
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