Pilot has committed to funding all operating costs associated with the Cliff Head facilities as it transitions them from oil production to carbon dioxide storage as part of the Mid West Clean Energy Project.

Pilot aims to store liquefied carbon emissions from major WA industrial emitters and facilitate emissions storage through a clean ammonia production process.

Pilot Energy and Triangle Energy have revised their vendor finance agreement, enabling Pilot to gain full ownership of the Cliff Head oil joint venture and its infrastructure, which is crucial for advancing its carbon capture project ambitions in Western Australia.

The deal features a two-stage asset transfer structure, beginning with the acquisition of onshore assets, followed by offshore assets pending approval from the National Offshore Petroleum Titles Administrator (NOPTA).

In addition to the acquisition, Pilot is initiating a grant-funded carbon capture and water processing pilot project in collaboration with technology partner Capture 6, enhancing its clean energy operations.

As part of the updated agreement, Triangle has deferred cash payment for the sale until next year, providing Pilot with the necessary time to secure funding for the acquisition.

The existing transaction terms remain intact, including a $4 million milestone payment to Triangle upon receiving a greenhouse gas injection license and a capped 2 percent royalty on third-party revenues from the Cliff Head Carbon Storage Project.

This agreement represents a significant step for Pilot towards becoming a carbon management and clean energy producer, moving closer to establishing Australia's first offshore carbon dioxide storage project.

Recently, Pilot entered a project development agreement with a consortium of South Korean firms led by Korea Southern Power Co to develop the Mid West Clean Energy Project and secure a clean ammonia supply.

Executive chairman Brad Lingo emphasized that the revised terms allow Pilot to acquire a 100% interest in the Cliff Head oil field joint venture, facilitating progress on the carbon storage project.

With the revised terms and a clearer regulatory pathway, Pilot is well-positioned to leverage its strategic infrastructure and partnerships in South Korea to contribute to Western Australia's low-emissions future.

The revised agreement benefits both companies by allowing Pilot time to secure funding while enabling Triangle to focus on its conventional oil and gas interests without incurring operating costs for Cliff Head.