August 14, 2013

Alcoa releases AU$20 million to Buru Energy for gas development

Alcoa has agreed to release up to AU$20 million to Buru Energy as part of its existing commercial arrangement to develop natural gas supplies from the Canning Basin.

In 2007, Alcoa and Buru (then Arc Energy) entered into a natural gas sales contract for the delivery of up to 500 petajoules of natural gas to Alcoa during a 15-year period. As part of this arrangement, Alcoa provided a AU$40 million pre-payment to Buru; subsequently AU$20 million was placed into an escrow account.

In the next phase of this project, Buru will use up to AU$20 million from the escrow account to fund the appraisal program for the Laurel wet gas accumulation. 

Alcoa’s Energy Development Manager Mike Shaw said this was an exciting development which builds on growing confidence that the Canning Basin is Western Australia’s next major source of natural gas supply.

As well as Buru, Alcoa has also contributed AU$80 million to other natural gas exploration and development opportunities including with Empire Oil and Gas and Latent Petroleum (now Transerv Energy).

Because Alcoa’s future is reliant on energy security, the company remains committed to continually exploring and developing competitively priced energy sources.

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Media contact: Nichola Holgate, Communications Manager, 0409 036 948 or nichola.holgate@alcoa.com.au