In this regard, the CHJV is to commence work on the refurbishment and upgrade of two oil tanks at the onshore Arrowsmith Stabilisation Plant (ASP).
This first step towards finalisation of the Perth Basin oil export route has joint venture approval to spend $2.35 million on upgrading two mothballed oil storage tanks, which is in addition to the one presently in use, will create a total storage capacity of 30,000 barrels of oil for the CHJV.
The Cliff Head Oil Field is currently producing 700 barrels of oil per day. The oil is stored in one 10,000 barrel tank at ASP, then trucked south to export facilities at Kwinana.
Oil export via this route will cease at the end of April 2022 for all oil produced in the Perth Basin.
The Cliff Head joint venture will then sell the estimated 140,000 barrels of oil stored at Kwinana in early May 2022 to BP, taking advantage of current high oil prices.
The resulting payment in June from this sale will be approximately $US14 million net to the CHJV.
From the beginning of May 2022, the CHJV, will store up to 30,000 barrels of oil in its three tanks at ASP, which will then be transported north to the Port of Geraldton, to be loaded onto a tanker, which will be chartered by the CHJV, and transported to refineries in Asia.
Both Triangle and Pilot are working cooperatively to finalise working arrangements and JV alignment regarding the future development plans for Cliff Head, which are focussing on the development of a Carbon Capture and Storage (CCS) operation to provide CCS to third parties.
This could significantly extend the working life of the CHJV facilities.
Triangle managing director Conrad Todd said he is pleased to report to shareholders that The Cliff Head Joint Venture is about to commence work on the initial part of the Perth Basin Oil Export Route.
“The expenditure of $2.35 million on oil tank refurbishment is a measure of our conviction and provide certainty that we will continue exporting the oil produced from the Cliff Head Oil Field.”