Pilot forms JV with Triangle for offshore wind at Aussie oil field

Australian company Pilot Energy Ltd (ASX:PGY) has formed a joint venture with Triangle Energy (Global) Ltd for a potential offshore wind project of up to 1.1 GW in the Cliff Head Offshore Oil Field off the coast of Western Australia.

The partners will study the feasibility and pursue the development of offshore wind in the area centred around the Cliff Head Offshore Oil Field Production Platform. They also plan to install onshore wind and solar capacity adjacent to the onshore Arrowsmith Separation and Processing Facilities.

Under the agreement, announced today, Pilot’s stake in the Cliff Head Wind & Solar Project Joint Venture will be 80%, leaving 20% for Triangle.

The project feasibility studies will have to determine how the existing facilities, both offshore and onshore, can be best used and maximised to support the development of the hybrid renewable energy project. Significant integration synergies and cost savings are expected.

“This is exactly the type of development that demonstrates the ability to substantially redefine how the Australian offshore oil and gas industry can, in parallel with existing operations, participate in a low carbon future through offshore renewable energy projects delivering substantial low cost energy to Western Australia. The substantial nature of the offshore opportunity in Western Australian also presents the option to supply renewable hydrogen to international markets,” commented Pilot’s Chairman, Brad Lingo.

Pilot has already announced similar plans to install up to 1.1 GW of offshore wind in Western Australia, in the area of Offshore Exploration Permit WA-481-P. That project, called Mid West Wind & Solar Project, includes onshore wind and solar too. Pilot stressed that it is retaining a 100% interest in it, while it is selling a 78.75% interest in exploration permit WA-481-P to Triangle. As part of the complex transaction, Pilot is buying an effective 21.25% interest in the Cliff Head Oil Field.

The WA-481-P area and the Triangle-operated oil field are neighbours.

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