Oz Project 'Must Renew Title': AWE

A change in Western Australian law has triggered a renewal process for the Waitsia gas project’s Native Title, project operator AWE said March 22.

The Western Australia Department of Mines, Industry Regulation and Safety issued the renewal for L1/L2 production licences which encompass the Waitsia project.

The licences will remain in place and continue to be valid during the process, including any period of negotiations with Native Title parties which have registered claims over any of the production licence areas, AWE said.

“We are pleased that the renewal process is regaining momentum following last year’s change of government in Western Australia and the recent change of our joint venture partner following the acquisition of Lattice by Beach in January,” AWE CEO David Biggs said.

The change in law altered the proposed term of the renewal period from a period of 21 years to an indefinite or perpetual term.

“Work on Stage 2 of the Waitsia gas project will continue during the renewal process, and the renewal process itself should not cause any timing delay. We anticipate that the renewal process could be finalised within 12 months, subject to government and regulatory approvals,” Biggs said.

AWE’s planned development of the Waitsia gas project has drawn international attention and resulted in a number of takeover bids in recent months. Its board has unanimously recommended that shareholders accept an offmarket takeover offer by Japanese trading company Mitsui for a cash consideration of A$0.95/share, in the absence of a superior proposal.