With Dampier Spirit FSO Set to Leave Stag Field, Jadestone Turns to Tankers

Thursday, September 3, 2020

Oil and gas firm Jadestone Energy has signed new offtake arrangements for its Stag offshore oil field in W. Australia as the FSO used to take oil off the Stag platform is set to retire.

Jadestone’s Stag oilfield produces crude oil via a fixed leg, central processing facility platform, which, since the field’s original development, has been offloaded to a floating storage and offloading vessel (“FSO”), the Dampier Spirit, which is moored to a catenary anchor leg mooring buoy.  The FSO is owned by Altera (formerly known as Teekay Offshore).

According to Jadestone, in May 2020, the owner of the Dampier Spirit FSO advised Jadestone of its intention to retire the Dampier Spirit later in 2020, and, as required under the terms of their agreement with Jadestone, "they have been unable to provide a suitable replacement vessel."

As a consequence, Jadestone has developed a new operating strategy, utilizing offtake tankers to directly offload Stag crude oil, in place of the existing long term leased FSO.  

"International tanker provider"

To implement the new strategy Jadestone said it has awarded a contract to "a respected international tanker provider" who will supply modern double-hulled tankers, "operated to the highest safety and environmental standards." Jadestone did not say who the tanker provider was.

"This new operating model has significant environmental risk mitigants over the existing model, by eliminating the need for ship to ship oil transfers in field.  These arrangements are expected to realize annual savings of approximately 20% over the current FSO operation," the company said Thursday.

Credit: Jadestone

Dampier Spirit leaves mid-September

The first offtake tanker is scheduled to arrive in the field coincident with the Dampier Spirit departure in mid-September 2020.  Ultimately multiple offtake tankers will rotate through the field on a schedule that optimizes production continuity, Jadestone said.

The new model has also required a change to the regulatory structure that was in place for the FSO.  

"Jadestone has worked with Australian regulators, the National Offshore Petroleum Safety and Environmental Management Authority and the Australian Maritime Safety Authority (“AMSA”), to ensure the model complies with all relevant laws and regulations and to obtain their acceptance. This includes both the requisite updates to the Company’s safety case for the Stag asset, and agreement that the vessels should be regulated by AMSA," Jadestone said.

Paul Blakeley, President and CEO commented: “I’m delighted with the new offtake arrangements that are being implemented for Stag, which will realize annual savings of approximately 20% over the current FSO operation, and which in turn will enhance the value of our booked reserves.  At the same time, we are always mindful of our safety and environmental obligations and have arrived at a more efficient cost-effective solution that significantly reduces environmental risk.”

Jadestone agreed to acquire the producing Stag oilfield, from Quadrant Northwest and Santos Offshore in 2016.

Categories: Energy Vessels Activity FSO Production Australia/NZ

Related Stories

Keyfield Ventures into Indonesia’s Oil and Gas Market with New Partner

Scarborough FPU's Topsides and Hull Come Together in Major Engineering Feat (Video)

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Pakistan’s OGDC to Start Production at ADNOC’s Offshore Block by 2027

VARD Snags $125M Shipbuilding Deal for Subsea Construction Vessel

INEOS Wraps Up Acquisition of CNOOC’s US Oil and Gas Assets

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

SLB Names Raman CSO, CMO

ONGC and BP Sign Deal to Boost Production at India's Largest Offshore Oil Field

Current News

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Valeura Concludes Eight-Well Drilling Campaign in Gulf of Thailand

Three Dead in Chevron's Angolan Oil Patform Fire

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com