Australian FPSO Temporarily Shut Down Again in Timor Sea
Posted 31/07/2023 12:04
Jadestone Energy, a Singapore-headquartered oil and gas company, has once again suspended production from its floating production storage and offloading (FPSO) vessel operating in the Timor Sea offshore Australia. The decision came after a gas alarm was triggered on July 29, 2023, indicating a possible communication issue between ballast water tank 4S and an adjacent tank within the FPSO Montara Venture. The company promptly informed key stakeholders, including the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), about the incident.
Jadestone Energy plans to empty and clean tank 4S over the next week to inspect and identify the source of the tank communication problem. The inspection will enable appropriate repairs to be carried out. Once completed, the company will provide updates on the next steps, potential costs, and any impact on production guidance.
Paul Blakeley, Jadestone's President, and CEO expressed disappointment over the shutdown but emphasized the importance of prioritizing personnel safety and the long-term integrity of the asset. He assured stakeholders that the company would address any additional defects while continuing the planned inspection of storage tanks on the FPSO.
This is not the first time production at the Montara field has been interrupted. Previously, a small oil leak from a crude oil tank on the FPSO Montara Venture led to a production shutdown in July 2022. While Jadestone advanced permanent repairs, an additional internal defect in the water ballast 4S tank was detected in August 2022, further delaying production restart.
Despite implementing a remediation plan and dealing with weather-related challenges, the restart of production was finally achieved in late March 2023.
Jadestone's Montara project encompasses three separate fields - Montara, Skua, and Swift/Swallow - located in the Timor Sea, approximately 690 kilometers west of Darwin, Australia.
As of June 30, 2023, Jadestone reported around $118 million in consolidated cash balances, with $111 million of debt drawn under its reserves-based lending facility. This resulted in a net cash position of $7.1 million, while the company's $35 million standby working capital facility remained undrawn.