Triangle Energy (Global) Ltd and Pilot Energy (ASX:PGY) Ltd have restructured the existing joint venture arrangements for the Cliff Head Joint Venture (CHJV) and the proposed Cliff Head Carbon Capture and Storage Project (CH CCS Project), clearing the way for further development.
Pilot has been undertaking feasibility studies assessing the potential for carbon capture and storage (CCS) and blue hydrogen production at the Cliff Head oil field, which the company believes has confirmed a “significant CCS resource” in the Cliff Head WA-31-L licence.
The two companies will now prepare and submit an application to the National Offshore Petroleum Titles Administrator (NOPTA) to have the Cliff Head Oil Field reservoir declared a Greenhouse Gas Storage formation and to develop the CH CCS Project once oil production has finished.
After said declaration, the CHJV will apply for a Greenhouse Gas Injection Licence for the injection and permanent storage of a minimum of 500,000 tonnes of carbon dioxide per annum into the Cliff Head Oil Field reservoir.
“Exciting and profitable use” for Cliff Head
“We are pleased to have concluded this term sheet for a CCS project with Pilot. It provides an exciting and profitable use for the Cliff Head facilities once the oil field reaches its end of economic life,” Triangle Energy managing director Conrad Todd said.
“Our co-operative joint venture will both reduce Triangle’s abandonment liability and defer it for at least 10 years after oil production.
“We are especially pleased that the CHJV will at the same time be making a significant contribution to the reduction of carbon dioxide emissions in Western Australia.”
Expected to be operational by 2025, the CH CCS Project represents the first off-shore CCS development in Mid-West Western Australia, and one of the first to be implemented in Australia.
Seismic survey over Perth Basin permits
In addition to signing a binding term sheet for the CH CCS, Triangle Energy is also conducting a seismic survey over its partially owned permits in the Perth Basin, including the prospective L7 Permit (TEG 50%, Key Petroleum 50%) and the EP437 Permit (TEG is acquiring 13.058% from Pilot and 86.942% from Key Petroleum).
Triangle has moved to acquire a 100% interest in both permits, expected to be actioned in early May following the seismic survey.
“I am pleased to report to shareholders that Triangle has commenced the 3D seismic acquisition in the L7 and EP 437 permits and that the seismic acquisition is fully third-party funded,” managing director Todd said.
“This is a major step towards realising the potential in this prospective block.”