JV partners Triangle Energy Global and Pilot Energy have firmed up the efficiency of a new shipping route through the Port of Geraldton in WA after completing a second delivery of 52,900 barrels of oil to a refinery in Thailand.
The vessel carrying the freight has since returned from its voyage and has been loaded with a fresh batch of 25,000 barrels of liquids ahead of a new 2023 delivery.
The work is all part of Triangle’s Cliff Head JV, or “CHJV” – a partnership with ASX-listed Pilot Energy that sees the duo complete oil production activities at its Cliff Head oil field about 270km north of Perth, share ownership of Arrowsmith stabilisation plant, or “ASP” in addition to associated well infrastructure and a host of federal and state pipeline licences.
As part of the tie-up the duo produces oil at Cliff Head before processing the material at the ASP and then trucks the material to the Port of Geraldton where it is loaded onto a cargo shipped and sent to Thailand for final sale.
Over the past few months, the partnership has confirmed the new route’s feasibility via a maiden oil delivery and they are now focused on streamlining the path following its second shipment.
Triangle Energy Global Managing Director, Conrad Todd said:“The second delivery of oil to a refinery in Thailand clearly confirms the viability of the truck to tanker export route. This export route is now progressing with the fifth 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.”
The CHJV’s ownership structure is currently split 79/21 in favour of Triangle however the rights are set to change following a recent declaration.
In October Triangle announced a plan to reduce its stake in the partnership to 40 per cent in exchange for $1 million - a figure it expects to collect by mid-next year following a government review of the pair’s planned carbon capture and sequestration, or “CSS” proposal for the zone.
The Cliff Head oil fields are currently pumping out about 700 barrels of oil each day but once dry will be used to store carbon generated by power production and industrial activities.
The JV partners have applied to have the reservoirs evaluated for their carbon storage capabilities by the Federal Government and if deemed suitable the deal with Pilot will proceed.
Oil producer Triangle says its CSS development plan could increase the Cliff Head oil field’s project life by twenty years and deliver a net present value of up to $210 million.
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