A fresh review of JV partners Triangle Energy Global and Pilot Energy’s Cliff Head oil reservoirs suggests the assets could hold 9.7 million tonnes of carbon dioxide – a 50 per cent increase on initial projections.
The producer’s oil fields are currently pumping out roughly 700 barrels of oil each day but once exhausted the aim is to use them to store carbon produced from power generation and industrial activities.
Triangle says the process known as carbon capture and sequestration, or “CSS” could extend Cliff Head’s commercial shelf life by up to 20 years and deliver a net present value of between $110 million to $210 million.
The company argues its boosted storage capacities will allow it to inject carbon dioxide into its Cliff Head oil reservoirs as a rate of approximately 665,000 tonnes per annum for 15 years.
The upgrade follows six months of work by Triangle, Pilot and storage subsurface adviser CO2Tech during which time the trio completed a comprehensive technical assessment of Cliff Head’s carbon storage potential.
According to the International Energy Agency, depleted oil and gas reservoirs feature an almost incomparable capacity to contain carbon dioxide in a manner that is yet to be effectively replicated by alternative storage devices.
The process is seen as a game-changer in the oil and gas industry and could readily breathe new life into dry energy assets.
To push the project along Triangle and Pilot are required to submit a regulatory application with the National Offshore Petroleum Titles Administrator, or “NOPTA”.
The duo finished the necessary paperwork about two weeks ago and say they have now lodged the submission.
Following the application, the group will now look to forge ahead with plans to deliver a final investment decision on the Cliff Head CCS project. The process will include additional regulatory submissions and Front End Engineering Design - a simple engineering program completed after the delivery of a conceptual design and feasibility study.
Triangle’s CSS work with Pilot forms a part of the pair’s Cliff Head Joint Venture which includes the producing Cliff Head oil field about 270km north of Perth, the Arrowsmith stabilisation plant and well infrastructure.
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