The Australian company Triangle Energy, whose shares are publicly traded, has entered external administration following similar actions taken last week by its partner in Australia’s first offshore carbon storage project, Pilot Energy.

Ownership Structure and Projects

Triangle Energy holds a 78.75% operating interest in the Cliff Head oil field, which it has attempted to sell to Pilot in recent years. The Cliff Head field and its associated infrastructure were planned to be converted for carbon dioxide storage as part of the Mid West Clean Energy Scheme, which was scheduled to launch in 2025.

Introduction of External Administration

In response to the current situation, Triangle appointed an external administrator for Triangle Energy (Global) and its subsidiaries Triangle (Perth Basin), Triangle Energy Onshore, and Triangle Energy Offshore. This decision followed the appointment of external administrators for Pilot Energy and Triangle Energy (Operations), as well as Triangle’s inability to meet potential decommissioning obligations.

Triangle Energy (Operations) is the operating entity for the Cliff Head project, in which Triangle Energy (Global) and Pilot’s subsidiary, Royal Energy, each hold a 50% stake.

Risks and Regulatory Measures

In Western Australia, there is now a risk of significant decommissioning costs for the Cliff Head oil platform following the appointment of external administrators at Pilot. The national offshore regulator, Nopsema, had previously ordered Triangle to fulfill its obligations to maintain well integrity and ensure safety after Triangle Energy (Operations) entered external administration on July 15.

Pilot’s administrators reported that a request from Triangle Energy (Operations) to its parent company for funding operational payroll expenses under the Cliff Head joint venture was denied. In a statement dated July 16, Nopsema noted ongoing uncertainty regarding the future availability of personnel, funding, contracts, and services necessary to keep facilities and wells in a safe condition, as well as the continuity of offshore support through agreements at the onshore Arrowsmith facility.

Current Status and Next Steps

According to the latest information, the Cliff Head facility does not currently pose an immediate safety or environmental threat, has not produced oil since August 2024, and is typically not staffed. Nopsema continues to exercise its authority to ensure the safe management of the facility and is working with administrators and government agencies for ongoing oversight. Personnel payment issues are being handled by the appointed administrators.

Financial and Legal Aspects

Trading in Triangle shares has been suspended since last Monday. The company also holds a 50% stake in the L7 production license and the EP 437 exploration license in the Perth Basin. In December last year, Triangle initiated legal proceedings against Echelon Energy’s subsidiary, Acacia (L7), over alleged breaches of contractual obligations on L7.

In March 2026, Triangle Energy spun off its Philippine assets into a separate company, Tetragon Energy, which recently listed on the ASX.

Potential Funding Measures

The Australian federal resources minister has supported extending the offshore oil and gas levy, first introduced for the decommissioning of Northern Endeavour, to help cover potential clean-up costs for Cliff Head.