The proponents of an Australian project that will repurpose the Cliff Head offshore oilfield for carbon capture and storage have agreed on a new joint venture structure.

Cliff Head is a producing shallow-water oilfield in the Perth basin offshore Western Australia; it has been producing for nearly 16 years, and the current operator is Triangle Energy.

Triangle and co-venturer Pilot Energy intend to convert Cliff Head into a CCS scheme once economic oil production has finished.

The idea will be to provide CCS services to third parties and to support the subsequent production of blue hydrogen and gas-fired power.

The joint venture partners anticipate applying to the Australian regulator NOPTA for a "greenhouse gas injection licence" for the injection and permanent sequestration of a minimum of 500,000 tonnes of carbon dioxide per annum into the Cliff Head reservoir.

They hope the Cliff Head CCS project can be operational by 2025.

JV structure

The pair said they have restructured their interests in the Block WA-31-L Cliff Head project resulting in Pilot holding a 57.5% interest in both the oil project and the CCS project with Triangle holding 42.5% in both.

Pilot will become operator of both projects, but Triangle will continue as technical operator of the oil project until its closure.

Brad Lingo, Pilot’s executive chair, said the Cliff Head CCS project would be the first offshore CCS project in the Mid West of Western Australia.

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