Triangle Energy completes lifting of Cliff Head crude from BP Kwinana Terminal

Triangle Energy Pilot ASX TEG PGY crude oil Cliff Head
The Cliff Head joint venture partners, Triangle Energy and Pilot Energy, expect to receive about $10.7 million total from BP in late November.

Perth Basin oil producer Triangle Energy (ASX: TEG) has announced it has completed the lifting of 107,000 barrels of Cliff Head crude oil from the BP Kwinana Terminal in Western Australia under its master sale and purchase agreement with BP Singapore.

Triangle and its Cliff Head joint venture partner Pilot Energy (ASX: PGY) recently inked the offtake deal with BP Singapore, which agreed to purchase 100% of the crude produced from the offshore oilfield commingled with crude and condensate from other producers and shipped free-on-board (FOB) from the Kwinana refinery, south of Perth.

Bolstered by oil price rise

Triangle managing director Robert Towner said the offtake deal with BP Singapore has been “advantageous” for the joint venture given the October 2021 Brent oil price.

“The accumulation of five months’ inventory has meant that we have benefitted 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 per barrel [A$86/bbll] 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,” Mr Towner added.

Crude supply pricing

Triangle said 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 the month.

It revealed the Cliff Head joint venture (which Triangle operates with a 78.75% stake) expects to receive approximately $10.7 million in late November.

Further, for 10,900 barrels of Cliff Head crude delivered and sold in April, the joint venture expects to receive about $1.1 million under the amendment to the previous crude oil supply agreement with BP Australia. The price received will be finalised at the end of October.

Cliff Head oil project

The Cliff Head project comprises a 72-square-kilometre production licence over a 6sq km oilfield in the offshore Perth Basin.

It was the first commercial oil discovery in the basin and production commence in 2006.

Cliff Head draws oil from three horizontal and two deviated production wells with the crude carried via a 14km pipeline to an onshore stabilisation processing plant at Arrowsmith, near the town of Dongara, before being trucked to BP’s Kwinana refinery.

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