Mud plant to service Browse oil fields

A Broome-based company is looking to expand its operation to service the gas and oil fields in the Browse Basin with a $12.5 million drilling fluids supply base near the port.

The application, lodged by MI Australia - a subsidiary of US-based oil services giant Schlumberger - will be presented to the Kimberley Joint Development Assessment Panel today for assessment because of its cost.

The company told the Broome Advertiser the operation was for the storage of materials relating to the Browse Basin and not the on-shore Canning Basin, where energy explorer Buru Energy is seeking permission to conduct the extraction of shale gas in a process known as fracking.

"MI Australia is in the process of constructing a mud plant in Broome and going through the due diligence to do this correctly," a spokesman said.

"The mud plant is to serve our customers who operate in the Browse Basin offshore market and as such is not designed for service in the Canning Basin.

"MI has been in the area for the past several years, servicing the customers off the North West Shelf, and are expanding and relocating their facility to be closer to the point of delivery."

Shire of Broome councillors endorsed the application subject to public comment of the Operational Environment Management Plan during a special council meeting on January 13, which was attended by dozens of community members.

Several environmental, health and heritage concerns were raised during public question time, mainly over the location of the facility.

The proposal has been submitted to several agencies for consideration and comment, including the Department of Water, Main Roads WA, the Department of Aboriginal Affairs and the Department of Environment and Regulation.

This assessment panel is expected to meet this week to assess the application.