WA-based producer Triangle Energy Global has squared away a cool $4.5 million after receiving payment for its second delivery of liquids to a refinery in Thailand over the December period. The shipment is part of the company’s Cliff Head joint venture, or “CHJV” with Pilot Energy which sees the duo complete production at the Cliff Head oil field about 270km north of Perth before mobilising it to buyers in Asia.
The partnership is currently split 79/21 in favour of Triangle, meaning Pilot walks away with an additional $1.2 million as a result of the oil shipment.
The milestone marks the JV’s second time using its recently established route to get its products to market following energy titan BP’s decision to cease oil handling and refining work at its Kwinana facility last year. The move left a host of producers clambering to get their oil to market. Triangle navigated the disruption by carving out an all-new export route though a facility at the Port of Geraldton. After completing its first oil delivery in October last year management suggested the path could provide itself and other operators in the Perth Basin with a solid channel from which to sell their oil.
According to Triangle, the tanker used to complete its second export has now returned to Geraldton after delivering a total of 51,100 barrels of oil. Plans are now in place to have the tanker complete another load-out with payment for the activity expected to hit the company’s coffers in March this year.
Triangle Energy Global Managing Director, Conrad Todd said: “This latest shipment continues the routine operation of the Truck to Tanker export route, with our tanker departing to Asia to unload oil once again. Management of oil production from the Cliff Head Joint Venture will continue until such time that commercial oil production ceases and we are ready to convert the facilities to a carbon dioxide sequestration project.
The CHJV shared with Pilot Energy also takes in the Arrowsmith stabilisation plant, associated well infrastructure and a handful of federal and state pipeline licences. The partnership tabled an average oil production output of roughly 650 barrels per day at Cliff Head over the December period, however once the zone’s sub-surface reservoirs run dry the duo plan to store carbon emissions inside them.
A government evaluation of the pair's proposed carbon capture and sequestration, or "CSS," plan for the site is currently pending and if waved through Triangle will offload half of its interests in the JV to Pilot in exchange for $1 million. The deal is tipped by Triangle to be completed in the second quarter of this year.
The oil producer says the CSS development could extend the Cliff Head oil field’s shelf life by two decades and return a net present value of up to $210 million.
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