Governance
Oversight of material sustainability risks sits with the Board of Directors (the Board).
Details on the roles of the Board and those authorities and responsibilities that are delegated to senior management, are available on Buru’s Corporate Governance webpage, and in the following figure.
All of Buru’s policies and commitments are reviewed, typically every two years, by the Board of Directors or a relevant committee with responsibility delegated by the Board. The Company’s corporate governance principles and practices are also reviewed annually against ASX Corporate Governance guidance and reported in the Corporate Governance Statement. All staff are required to annually confirm that they have read and understood the Company’s values and policies and are expected to implement them at all levels.
Buru has had zero non-compliance with external laws and regulations or internal policies during the reporting period.
Buru is committed to creating and maintaining a culture of proper conduct and fair and honest dealing in its business activities. Through the Whistleblower Policy, Buru encourages the reporting of any instances of suspected unethical, illegal, fraudulent, or undesirable conduct involving the Company and it provides protections and measures so that those persons who make a report may do so confidentially and without fear of intimidation or reprisal. As part of the psychosocial hazards process undertaken in 2022 (see Health Management), the mechanisms for raising concerns were highlighted to all staff. This included circulation of a poster outlining the processes. During the reporting period there were zero critical concerns reported to the Board.
As announced in May 2022, Buru appointed Thomas Nador as Chief Executive Officer during the year, with Eric Streitberg transitioning from Executive to Non-Executive Chair. This transition was complete by the end of 2022, with Eric Streitberg officially commencing the Non-Executive Chair role on 1 January 2023.
Following resignation of Buru’s previous CFO and Company Secretary, Paul Bird assumed these roles in October 2022.
Asset Integrity and Critical Incident Management
Asset integrity is a core focus in the Company, with key controls implemented to precent and mitigate the risk to our operations and activities.
2022 Highlights:
- Major Projects Management System implemented
- Standardised reporting of Tier 1 and 2 safety events
Risk Management Systems
Critical incidents are recognised as major operational risks and can include events such as loss of well control or crude transport accidents. The implementation of formal safety management systems and performance standards set out to manage these risks.
Overarching Buru’s management systems is the Buru Energy Management System (BEMS). The purpose of the BEMS is to set out the overall processes by which Buru manages its activities. It identifies and ensures compliance with all applicable legislative and internal requirements and ensures the Company conducts its activities in a manner that poses the lowest possible risk to people, the environment and its assets. The BEMS provides the structure by which the various internal control systems interact to ensure functional areas are coordinated across the Company, as outlined in Figure 13.
2022 Performance
During the reporting period, Buru had one Tier 2 spill incident. The spill was the result of equipment failure, which caused a produced water tank to overfill (approx. 500 L). There was, however, no impact from the spill as it was fully contained within a bunded area. Field personnel responded rapidly to clean up the spill, with none reaching the environment. A thorough investigation was undertaken to determine the root cause and other contributing factors, with corrective actions assigned.
Buru implemented standardised reporting of Tier 1 and 2 process safety events as part of its monthly HSE report to the board. This standardised reporting will improve transparency and tracking of performance on risk management.
2023 Goals:
- Target zero Tier 1 and Tier 2 safety events
- Maintain emergency response preparedness, reflecting operational risk
Economic Impacts
Buru understands that the procurement and hiring practices it implements play a significant role in the creation of economic and employment opportunities in the host communities in which it operates.
2022 Highlights:
- Committed to delivering material growth in the integrated energy business
- $11.48 million spent on local Kimberley suppliers
Creating Growth and Value
As outlined in Buru’s 2022 Annual Report, Buru is actively working to create sustainable growth and value for its stakeholders. Buru’s growth strategy targets multiple avenues, including its Ungani Oilfield, Rafael gas development and new energy ventures. All are aimed at providing benefits to shareholders, employees, customers and the community. Further details on community benefits are outlined in the following sections.
Management of Economic Impacts
Contribution to the local economic and social community of the Kimberley region is a key focus and a key goal of Buru’s. Buru also seek to train and employ Traditional Owners to maximise the benefits its operations bring to the landholders.
Management of these contributions and relationships is governed by Buru’s existing Aboriginal Participation and Local Content Policy, and recently developed Aboriginal Engagement, Procurement and Employment Standard and Business Engagement Plan for Nyikina Mangala, all discussed in more detail in the Aboriginal Diversity chapter.
Supply Chain Relationships
A key driver of local relationships is to keep the Company’s supply chain local. Local businesses are given the opportunity to provide services and supplies through both a tendering and negotiation system, with local Kimberley businesses capable of supplying a high level of goods and services for Buru’s operations.
In 2022 Buru operated Joint Ventures spent over $11.48 million on goods and services from 78 entities in the Kimberley region. Additionally, the Senior Management team staff (defined as the Executive Committee of Buru as at 31 December 2022), was made up of 25% of employees hired from the Kimberley local community.
A further amount of $591,899.21 of direct spend on Buru operated Joint Ventures was attributable to five Aboriginal entities.
During 2022 Buru also offered to leave water bore infrastructure in place at the Currajong 1 well site for the local pastoralist to use. As at the end of the reporting period, a response to this offer is still pending. In 2023, benefits to Traditional Owner stakeholders associated with Buru operations will continue to be maximised through the implementation of the Aboriginal Engagement, Procurement and Employment Standard and further Aboriginal Contract Engagement Plans.