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carriers which can safely transport carbon milestone for Cliff Head oil drilling campaign complete
dioxide captured in the supply chain.
Transporting CO2 in a liquid state requires export Beach Energy is pleased to announce the
a pressure C-Type cargo tank capable of successful completion of its offshore Otway
withstanding a high vapor pressure of over 5 The Cliff Head Joint Venture (CHJV) is Basin1 drilling campaign. The Otway
atmospheres or greater. However, this type of pleased to advise that it has completed programme is a critical investment in new gas
cargo tank is usually used for smaller carriers the first load-out of oil from its recently supply for the east coast market, providing
and there are technical difficulties in enlarging refurbished and expanded storage tanks at the much needed gas to homes and businesses.
the size of the tank to meet the market need Arrowsmith Stabilisation Plant (ASP) facility Drilling commenced in February 2021
to transfer a larger amount of CO2 to storage onto a chartered tanker, the AB Paloma, at the and concluded with the final well of the
facilities. Port of Geraldton. campaign, Thylacine North 2, completed in
In addition, the tanks and supporting The CHJV trucked 24,500 barrels of oil July 2022. The seven-well campaign was the
structures of LCO2 carriers must be designed from ASP to the Port of Geraldton between largest in the basin’s history and delivered
with the greatest care because of the high Friday the 8th and Monday the 11th of July one new gas discovery at the Artisan field
specific gravity of liquefied CO2. and loaded it onto the AB Paloma. The tanker and six successful development wells in the
To address these technical challenges in will remain on standby while the CHJV Geographe and Thylacine fields. Results were
designing LCO2 carriers, Korean Register produces and stores a further 25,000-30,000 at or above pre-drill expectations and are
(KR) and Hyundai Heavy Industries (HHI) barrels, which will then be loaded onto the summarised below.
conducted a joint development project (JDP) tanker, in approximately 6 weeks. The AB Commenting on the drilling campaign,
to develop 40K CBM LCO2 carriers fueled Paloma with its cargo of oil will then head for chief executive officer Morné Engelbrecht
with LNG. Singapore for sale to refinery. said “Completion of Beach’s first offshore
Under the JDP, HHI carried out the This new export route will now enable the development drilling campaign is a significant
basic and structural design of the 40K CBM continuation of oil production in the Perth achievement. It has materially de-risked
LCO2 carrier, while KR verified the safety Basin for both the Cliff Head oilfield and the Otway programme and proven Beach’s
and conformity of the design reviewing the other Perth Basin producers and will facilitate offshore operating capabilities.
class rules and international conventions. the CHJV to continue to progress plans for “I thank all our stakeholders for their
The resulting concept design has now been alignment on the future utilisation of the Cliff commitment over many years – our dedicated
awarded Approval in Principle (AIP) by KR. Head Facilities. team at Beach, the communities in which
One of the main aims of the project was The CHJV would like to acknowledge the we operate, regulators, our drilling partner
to explore the economic feasibility of large support and assistance received from the Port Diamond Offshore Drilling and our joint
pressure-type CO2 storage tanks. To increase of Geraldton in the planning and execution of venture partner O.G. Energy. The collective
the size of the CO2 storage tanks, special this new oil export route. effort has seen Beach deliver new gas at a time
materials with low-temperature and high- Mr Damian Tully, CEO of Mid West Port when it is desperately needed.
tensile need to be used instead of ordinary Authority (MPWA) said: “We are excited to “The Otway programme is delivering
steel, which makes it challenging to control facilitate a new tanker export route through the foundation for a step-change in Beach’s
the thickness and weight of the tanks. Geraldton, enabling the supply chain and production and free cash flow from FY24. It is
The LCO2 carrier designed which has been demonstrating that MWPA continues the culmination of foresight, years of planning
awarded AIP, is capable of storing up to 40K to provide a viable trade opportunity. I and significant capital investment to develop
CBM using a type C pressure tank made of congratulate the CHJV on this significant new gas supply for the east coast market,
existing low-temperature and high-tensile milestone and we look forward to continuing where the increase in demand for gas has been
materials. An LNG fuel propulsion system has our work with them.” long-anticipated”, Mr Engelbrecht said.
been installed, ensuring low-carbon emissions The Cliff Head field is expected to increase Completion of the drilling campaign is a
during the carrier’s operation. production in Late August when the CH10 key building block and milestone in delivering
The safety of the carrier’s cargo hold, well workover is completed. This workover Beach’s production target of 28 MMboe in
cargo tank and supporting structure has been will resume late July when the long lead items FY24. Commissioning of the Geographe
verified and approved using KR’s SeaTrust- (LLI’s), specifically the electric submersible development wells in Q3 FY22 contributed
HullScan software solution which was pump, arrives in Australia. These LLI’s were to an increase in Otway Gas Plant average
developed in house. purchased using funds from the capital raise daily production from 52 TJ/day in Q3 FY21
A KR official said: “This AIP is a significant undertaken in May this year. to 140 TJ/day in Q4 FY22. Connection of the
achievement, bringing the commercialization Triangle Energy managing director, Mr four Thylacine development wells by mid-
of large LCO2 carrier technology even closer. Conrad Todd said: “This is an exciting time 2023 is expected to enable the Otway Gas
KR will continue to support the industry’s and a major turning point for the Cliff Head Plant to produce at full nameplate capacity
work to develop CO2 capture, storage and Joint Venture The completion of the first of 205 TJ/day, with this gas to be sold into
burial-related technologies, while proactively export run for Cliff Head oil through the Port existing contracts. This increase in production
working to address the industry-wide of Geraldton ensures that we will continue is coming at a time when new gas supply for
challenge of decarbonization.” exporting and selling the oil produced from the east coast market is desperately needed.
KOREAN REGISTER, July 11, 2022 the Cliff Head oilfield for the foreseeable Pipeline connections and tie-in of the
future as we progress plans on the future Thylacine wells are expected to commence in
utilisation of the Cliff Head facilities.” Q2 FY23 post the winter period. All wells are
OCEANIA TRIANGLE ENERGY, July 14, 2022 expected online by mid-2023.
BEACH ENERGY, July 12, 2022
Triangle Energy – Major Beach Energy – Otway

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