- Perth Basin oil producer Triangle Energy’s (TEG) shares have dropped this morning as it responds to BP’s Kwinana Refinery shutdown
- BP recently announced it intends to stop fuel production at its Kwinana Refinery and convert the refinery into a fuel import terminal
- Currently, Triangle sends its crude oil from Cliff Head to the Kwinana Refinery under a supply agreement with BP
- The multinational oil and gas company has told Triangle it will continue to operate the refinery while it plans the fuel import terminal
- In the meantime, Triangle will look at other options for its product
- On the market this morning, Triangle is down 25 per cent and is trading for 2.4 cents per share
Triangle Energy (TEG) shares have dropped this morning as it responds to BP’s Kwinana Refinery shutdown.
Last week, BP announced it intends to stop fuel production at its Kwinana Refinery and convert the refinery into a fuel import terminal.
Triangle currently delivers its crude oil from Cliff Head Oil Project in the Perth Basin to the Kwinana Refinery under a supply agreement with BP.
The multinational oil and gas company has told Triangle it will continue to operate the refinery while it plans the fuel import terminal. It will also agree to reach discussions to reach an understanding about the current supply agreement. However, currently, Triangle has not received a formal notice of termination.
Triangle is now assessing other options for its product.
As the refinery will continue for some time, the Perth Basin oil producer is not expecting its current production profile and operations are expected to remain unaffected for the near-term. For the September quarter, the company produced 53,246 barrels of oil, which is around 579 barrels of oil per day.
Last week, the company announced an updated reserves and resources summary for Cliff Head, which included a proved and probable (2P) economic field life extended to mid-2026, with a 2P reserve of 1.13 million stock tank barrels.
However, with BP’s announcement, Triangle will withdraw its reserves and resources statement.
On the market this morning, Triangle is down 25 per cent and is trading for 2.4 cents per share at 10:38 am AEDT.