Pilot to acquire Triangle’s interest in Cliff Head oil field JV
SUMMARY
The move aims to consolidate ownership arrangements for the Cliff Head JV and the proposed Cliff Head carbon capture and storage (CCS) project.
By Shardul SharmaPilot Energy has signed an agreement with Triangle Energy to acquire the remaining 78.75% interest in the Cliff Head joint venture that it currently does not hold for A$15mn ($10.22mn), the companies said on July 27.
Triangle will receive A$15mn in staged payments of A$3mn and A$4.5mn in cash milestone payments, in addition to royalties from the JV of up to A$7.5mn.
The move, which was announced last year, aims to consolidate ownership arrangements for the Cliff Head JV and the proposed Cliff Head carbon capture and storage (CCS) project. This strategic realignment allows each company to independently pursue their energy sector strategies while enhancing the development of the promising offshore carbon capture initiative, the companies said. The agreement provides clear pathway for CCS development project at Cliff Head and allows Triangle to focus on upcoming exploration in the Perth basin.
This transaction is expected to be completed by early 2024, subject to the fulfillment of certain conditions precedent.
The initial arrangement, which granted Pilot an increased 60% interest in the Cliff Head oil field JV and full operatorship upon receiving National Offshore Petroleum Titles Administrator (NOPTA) approval of a declaration of formation for carbon capture and storage covering WA-31L, has been superseded by this revised agreement.
Pilot expects to start the Cliff Head CCS project offshore Western Australia by late 2025 or early 2026, the company chairman Brad Lingo told GasPathways earlier this year.
Cliff Head CCS project is the first stage of the Mid West Clean Energy project which involves the conversion of the Cliff Head oil field from oil production to a CCS project. The oil field lies in shallow waters offshore Western Australia and is currently jointly operated by Pilot and Triangle. The second stage of the Mid West Clean Energy project relates to blue hydrogen production and stage three involves production of clean ammonia for export.
