First oil flow from Cliff Head

CRUDE oil from the Cliff Head joint venture, the first offshore field in the Perth Basin to go into production, will begin flowing into the new $6.4 million unloading facility at BP’s Kwinana oil refinery late this month. The facility has the capacity to receive local crude oil by road tanker from the Cliff Head project off the Western Australian coast, just south of Dongara, building to 15,000 barrels a day within 18 months. Field operator, Rock Oil Co Ltd, is expecting an initial production rate of more than 10,000 barrels a day. The Cliff Head field is estimated to produce 14 million barrels of crude oil over 10 to 15 years and generate $1.2 billion, initially peaking at about $300 million a year. “The project, which will contribute about 10 per cent of WA’s oil requirements in its first year, establishes the basin as Australia’s fourth offshore oil producing region after Bass Strait, the North West Shelf and the Timor Sea,” Resources Minister John Bowler said. BP believes the investment in the facility will cater for all anticipated future volumes from the basin. Cliff Head has priority access, but the facility can be used for other crude oil deliveries.

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