Triangle Energy is evaluating alternate opportunities for the crude oil produced at the Cliff Head project in the Perth Basin after BP announced it would cease fuel production at the Kwinana Refinery.
BP announced last week that it planned to stop fuel production at the Kwinana Refinery and convert it into a fuel import terminal.
Triangle advised that BP would continue to operate the refinery in its current state for many months while it completes planning for the conversion into a fuel import terminal.
BP has also committed to discussions to reach an understanding of what the proposed conversion will mean under the Cliff Head crude oil supply arrangement.
Triangle managing director Rob Towner said since the company became registered operator of Cliff Head in July 2018, it had reduced operating costs, increased capacity, extended the economic life of the project and demonstrated the prospectivity of the Perth Basin.
“As BP had advised that the Kwinana Refinery will continue in its current state for some time, the company’s current production portfolio and operations are expected to remain unaffected for the near-term. The company produced 53,246 barrels for the quarter ending September 20, 2020,” Towner said.
“The impact of the cessation of production at the refinery and the need to transition to an alternate opportunity on the economic parameters underpinning these reserves and resources is unknown at this time.”
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