Triangle Energy (Global) Ltd has completed the lifting of 107,000 barrels of Cliff Head crude from the BP Kwinana Terminal under the Master Sale and Purchase Agreement with BP Singapore Pte Ltd.
Under the terms of the offtake agreement, BP purchased the crude FOB BP Kwinana Terminal as part of a co-mingled product with other producers.
Benefit from oil price hike
Triangle Energy’s managing director Robert Towner said: “The recently announced offtake agreement has certainly been advantageous for the Cliff Head Joint Venture, given the October 2021 Brent Oil price.
“The accumulation of five months’ inventory has meant that we have benefited from the increase in oil price by approximately US$1.0 million compared to monthly lifting.
“Any price received over US$65 Brent Oil is well above the company’s budgeting and provides valuable working capital to deliver outcomes on our Perth Basin exploration, development and production projects.”
Pricing
The price received is a fixed differential to the average dated Brent price for the month of October 2021 and will be finalised at the end of that month, with the Cliff Head joint venture (CHJV) to receive about A$10.7 million on or about November 25, 2021.
Further, for 10,900 bbls of Cliff Head crude delivered and sold in April 2021, under the amendment to the previous Crude Oil Supply Agreement with BP Australia, the Cliff Head Joint Venture will now receive about A$1.1 million, with the price received to be finalised at the end of October 2021.
Cliff Head joint venture
Earlier in October, Triangle Energy entered into the agreement through CHJV, where Triangle holds a 78.75% majority stake with Pilot Energy Ltd.
Notably, Triangle Energy (Operations) Pty Ltd (TEO), will act as the operating agent on behalf of all of the designated seller groups concerning each of their offtake agreements and has agreed with each of the producers to govern the provision of these services.