- The Cliff Head Joint Venture (CHJV) lifts 107,000 barrels of crude oil from the BP Kwinana Terminal under an agreement with BP Singapore
- The CHJV is owned by majority holder Triangle Energy (TEG) and Pilot Energy (PGY)
- The JV will receive around $10.7 million for the sale of the crude to BP Singapore
- TEG says a recent increase in oil price has been advantageous for the company
- Shares in Triangle Energy were trading 2.5 per cent higher at 2.1 cents, while Pilot Energy was steady at 7.3 cents as of 2:28 pm AEDT
Triangle Energy and (TEG) and Pilot Energy (PGY) say the Cliff Head Joint Venture (CHJV) has lifted 107,000 barrels (bbls) of Cliff Head crude oil from the BP Kwinana Terminal under a Master Sale and Purchase Agreement with BP Singapore.
The Cliff Head Oil Field is located in Western Australia’s Perth Basin and includes the Arrowsmith Stabilisation Plant. The joint venture is 78.75 per cent owned by Triangle in partnership with Pilot, which owns the remaining 21.25 per cent stake.
Under the terms of the offtake deal, which was announced earlier this month, BP has purchased the crude free on board as part of a commingled product with other producers.
The purchase price is set at a fixed differential to the average dated Brent price for the month of October 2021 and will be finalised at the end of this month.
Accordingly, the CHJV is set to receive around $10.7 million on or close to November 25.
The partners also said the JV would receive roughly $1.1 million for 10,900 bbls of Cliff Head crude delivered and sold in April under an amendment to the previous Crude Oil Supply Agreement with BP Australia that was announced in March.
Triangle Energy’s Managing Director Robert Towner said the offtake agreement had been advantageous for the CHJV given the Brent Oil price in October 2021.
“The accumulation of five months’ inventory has meant that we have benefited from the increase in oil price by approximately US$1 million (A$1.3 million ) compared to monthly lifting,” he said.
“Any price received over US$65 (A$86.40) 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.”
Shares in Triangle Energy were trading 2.5 per cent higher at 2.1 cents, while Pilot Energy was steady at 7.3 cents as of 2:28 pm AEDT.