Pilot Energy and Samsung C&T Corporation Engineering & Construction Group have executed a Memorandum of Understanding (MOU) for the development of the Cliff Head Carbon Capture and Storage (CH CCS) Project and the Clean Energy Ammonia Project, collectively known as the Mid West Clean Energy Project (MWCEP).
Under the agreement, Pilot and Samsung C&T will jointly fund the MWCEP, with Samsung C&T acquiring a 20% participation interest once key conditions are met. Samsung C&T will also serve as the Engineering, Procurement, and Construction (EPC) contractor for the Clean Ammonia Project, responsible for off-taking clean ammonia and exporting it to Korea.
Pilot Energy is set to receive $67 million from CHCCS Co, a newly established joint venture project entity, based on the historical construction costs of the Cliff Head oil project, which serves as the foundational asset for the MWCEP. The transaction is contingent on achieving a minimum forecast Internal Rate of Return for the CH CCS Project.
The MOU’s consummation is contingent on several critical conditions:
- The declaration of a Greenhouse Gas Storage Formation over the WA-31-P area by the National Offshore Petroleum Titles Administrator (NOPTA).
- The successful completion of the integrated project pre-FEED study.
- The receipt of final board approval from both parties.
“Pilot is delighted that Samsung C&T has partnered with us in the development of the Mid West Clean Energy Project. Samsung C&T’s participation is an important step as they provide additional technical expertise and financial strength to ensure the successful development of this exciting Western Australian clean energy project. Furthermore, it continues the strong partnership and ongoing trading relations between Australia and Korea,” Pilot Chairman Brad Lingo said.
Australian Chamber of Commerce in Korea Chairman Ross Gregory commented, “This partnership is an exciting opportunity for both Samsung C&T and Pilot to jointly progress the Mid West Clean Energy Project development in Western Australia, further demonstrating the continued strong collaboration between Australia and Korea on important clean energy transition projects.”
Pilot noted that the partnership reflects a shared vision to advance sustainable energy solutions and lead the global transition towards a cleaner future.
