Triangle Energy Global’s Cliff Head JV with Pilot Energy could soon pocket about $6.8 million after unloading and subsequently selling off close to 51,000 barrels of oil via a new shipping route through Thailand.
The Perth-based oil and gas player could earn about $5.4 million from its share in the project with the company’s joint venture partner taking home an estimated $1.4 million for its part of the deal.
Another shipment is scheduled for later in the year.
The $6.8 million fee has been paid via a pro-forma invoice and will be adjusted later this month once final oil price calculations have been integrated into the sum.
The delivery forms part of the duo’s Cliff Head JV, or “CHJV” operation – a partnership that see the pair conduct oil production work at the Cliff Head field around 270km north of Perth and ship it off to buyers in Asia.
Triangle lays claim to an almost 79 per cent interest stake in the CHJV whilst Pilot picks up the balance of roughly 21 per cent.
The tie-up includes the Arrowsmith stabilisation plant, well infrastructure and a handful of federal and state pipeline licences.
The CHJV trucked 26,500 barrels of oil from the Arrowsmith stabilisation plant to the Port of Geraldton between September 29th to October 3rd. The companies subsequently loaded the cargo onto the AB Paloma tanker via an around the clock loading process.
The freight joined an additional 24,500 barrels of oil from the joint venture’s maiden load out for a total shipment of about 51,000.
Triangle says AB Paloma – the vessel used to fright the oil, is now back from Thailand and anchored off the Port of Geraldton ahead of a second loading with an earmarked completion date of about 5-6 weeks.
The West Australian oil sector was blindsided earlier in the year by energy giant BP’s decision to cease oil handling and refining work at its Kwinana facility – a ruling which left a host of producers clambering to get their liquids to market.
Triangle Energy navigated the closure of the facility by forming a new export route for its Cliff Head oil to Asian crude markets – via a newly established facility at the Port of Geraldton.
After demonstrating the new route’s viability, Triangle says the path could provide itself and other operators in the Perth Basin with a solid channel to sell off their oil.
Triangle Energy Global’s Managing Director, Conrad Todd said:“The payment for oil delivery to a refinery in Thailand is the final confirmation of the viability of the truck to tanker export route. This export route is now progressing with the third tanker loading of crude oil complete which ensures that we will continue exporting and selling the oil produced from the Cliff Head Oil Field for the foreseeable future as we progress plans on the future utilisation of the Cliff Head facilities.”
Triangle and Pilot are now set to continue driving value out of the Cliff Head project by developing a carbon capture and storage operation.
Once up and running, the pair aim to provide carbon management services to third-party operators – a move Triangle says could bolster the CHJV’s shelf life.
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