Farm-in Agreement with Mitsubishi Corporation
In June 2010 Buru entered into a joint venture with Mitsubishi Corporation involving up to $152.4 million of exploration and development expenditure by Mitsubishi Corporation.
- Mitsubishi Corporation has the right to earn interests in Buru’s exploration permits by carrying up to $62.4 million of exploration for conventional hydrocarbons in 2010 and 2011 and $40 million exploration for unconventional hydrocarbons in 2012.
- Mitsubishi Corporation may also carry up to $50 million of Buru’s development costs for major oil and gas production infrastructure.
- In exchange for this funding Mitsubishi Corporation has the right to earn up to a 50% interest in the majority of Buru’s exploration permits.
- Mitsubishi Corporation also has the right to acquire a 50% interest in Buru’s production permits in exchange for an additional cash payment at a price determined by an independent expert based on 2P reserves.
- Buru will remain as operator of all its permits, with Mitsubishi Corporation taking responsibility for all LNG commercialisation of Buru-Mitsubishi Corporation joint activities.
For more information about the Mitsubishi Corporation click here.