Pilot Energy acquires ownership in Cliff Head field for CCS

Pilot Energy Ltd. and Triangle Energy (Global) Ltd. reached an agreement to transfer ownership of Cliff Head field in shallow water offshore North Perth basin, Western Australia, to Pilot for transition from production to carbon capture and storage (CCS).

The agreement will consolidate ownership of the Cliff Head Joint Venture (CHJV) and proposed Cliff Head CCS project and allows Triangle to focus on upcoming oil and gas exploration in Perth basin. Pilot will become 100% owner and operator of the Cliff Head project.

The revised agreement results in Pilot acquiring the remaining 78.75% interest that it does not already hold in the Cliff Head JV via the purchase of Triangle subsidiaries including Triangle Energy (Operations) Pty Ltd. (TEO), which is the current operator of Cliff Head field. The agreement supersedes arrangements under which Pilot was to increase its interest in the JV to 60%.

TEO employees will continue to work at the field as it transitions from oil production to CCS. Triangle will support ongoing operations until the transaction completes.

Triangle will receive staged payments comprising $3 million and $4.5 million cash milestone payments from Pilot, plus royalties paid from the CCS project JV of up to $7.5 million, leading to a total consideration of $15 million.

The transaction is expected to complete early 2024.