NOPSEMA Confirms Completion of Key Well and Pipeline Securing at Head Field
Pilot Energy confirms regulatory compliance and operational progress at the Head Field, advancing the repurposing of Cliff Oil infrastructure into a carbon storage facility as part of the Mid West Clean Energy Project.
- NOPSEMA confirms completion of key well and pipeline securing activities under General Direction 1947
- Marine growth removal and integrity inspections of offshore pipelines and facilities successfully conducted
- Pilot Energy progressing repurposing of Cliff Oil infrastructure for carbon storage under Mid West Clean Energy Project
- Operational focus on right-sizing current activities and exploring near-term revenue opportunities using existing assets
- Transition to non-production phase underway with ongoing environmental risk management and regulatory compliance
Regulatory Compliance and Operational Milestones
Pilot Energy Limited (ASX: PGY) has provided a comprehensive update on its Head Field operations at the Cliff Oil Facility, confirming that it has met the key requirements set out by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) under General Direction 1947. This directive mandates a series of activities to secure wells, pipelines, and facilities following the cessation of production at the Head Field.
Since August 2024, Pilot Energy has been solely funding and managing these activities, focusing on reducing production risks and transitioning the asset into a non-production phase. The company reports successful completion of securing wells and production pipelines, with ongoing environmental protection and risk management activities incorporated into its FY26 operational plans.
Infrastructure Integrity and Maintenance
Between March and April 2025, Pilot Energy completed a marine campaign involving remotely operated vehicle (ROV) surveys to remove marine growth from the Cliff Wellhead Platform and pipelines. These inspections confirmed the structural integrity of subsea assets, with no significant issues detected. Additional cathodic protection measurements and internal pipeline inspections using intelligent pipeline inspection gauges (PIGs) and acoustic Smart Ball devices further validated the condition of the infrastructure.
The company also deployed an Autonomous Underwater Vehicle (AUV) to efficiently survey the offshore pipelines, reducing survey time and costs while ensuring comprehensive integrity assessments. These activities provide a robust baseline for ongoing asset management and support the planned repurposing of the facility.
Transition to Carbon Storage and Operational Strategy
Pilot Energy is actively progressing the repurposing of the Cliff Oil infrastructure into a carbon storage facility as part of the Mid West Clean Energy Project (MWCEP). This transition involves converting existing offshore and onshore assets, including wellhead structures, production and injection wells, pipelines, tanks, and utility systems, into components of a permanent CO2 injection and storage operation.
The company is also right-sizing current operations to align with the non-production phase requirements and exploring near-term revenue opportunities. These include leveraging the Arrowsmith Plant as a terminal for oil condensate storage and liquids export, as well as supplying gas to local transmission networks to support the power grid. Such initiatives aim to optimize asset utilization while supporting the broader energy transition.
Strategic Implications and Future Outlook
This update underscores Pilot Energy’s commitment to regulatory compliance, environmental stewardship, and strategic innovation in transitioning legacy oil infrastructure towards clean energy solutions. The repurposing of the Cliff Oil Facility into a carbon storage hub positions the company at the forefront of Australia’s emerging carbon management sector, potentially unlocking new revenue streams and contributing to national emissions reduction goals.
However, the timeline for full operationalization of the carbon storage facility and the realization of associated financial benefits remains subject to ongoing regulatory approvals and market conditions. Pilot Energy’s ability to navigate these complexities will be critical in defining the project's success and its impact on shareholder value.
Bottom Line?
Pilot Energy’s methodical transition of Cliff Oil assets into carbon storage marks a pivotal step in Australia’s clean energy evolution, with market eyes now on regulatory milestones and commercialisation timelines.
Questions in the middle?
- What is the expected timeline for full commissioning of the carbon storage facility at Cliff?
- How will Pilot Energy monetise near-term revenue opportunities from existing assets during the transition?
- What regulatory or environmental hurdles remain that could impact the repurposing project?
