Jadestone Shutting Down Montara FPSO Output to Fix Tank Issues

OE Staff
Friday, August 12, 2022

Asia Pacific-focused oil and gas company Jadestone has decided to shut production from its Montara field FPSO in the Timor Sea, off Australia, to allow for repairs on a tank that leaked oil back in June through a 30-millimeter crack.

While the incident had led Jadestone to shut down production from the Montara Venture FPSO, production resumed in July following a temporary repair of the leak point in the 2C tank, and Jadestone at the time said it was working on a permanent solution.

In a statement on Friday, Jadestone said that, while preparing for the repair, it found a defect in water ballast tank 4S, which will now also be included in the workscope of repairs, and that it would need to shut production from the FPSO again.

"Over the past several weeks, the permanent repair to tank 2C has been developed, though delayed due to weather, manpower and logistics issues, further complicated while the facility remains in production operations.  This has resulted in an inability to simultaneously accommodate the increased number of inspection and repair crews alongside production operations.  

As a result, the company has taken the decision to temporarily shut-in production from Montara and reorganize offshore manpower on the FPSO, enabling priority and focus on maintenance and inspection crews.  This is the most practical and efficient way to complete tank repairs whilst progressing ongoing inspection and remediation to other tanks in the FPSO and to complete key remaining scheduled inspection and repair activities planned for this year," the company said.

Credit: Jadestone

It is currently anticipated that these inspection and repair activities will result in production being shut-in during the remainder of August and potentially through September 2022.  It is currently anticipated that prioritizing the activity as described by Jadestine will result in incremental costs of US$2-4 million.

Output guidance cut

As a result of the Montara shut-in, and the performance of the wider production portfolio year-to-date, Jadestone now expects that 2022 production will average between 13,000 and 14,000 boe/d. 

This compares to the announcement on June 20, 2022, which signaled that 2022 production would likely be around 15,500 boe/d, being the lower end of the previous guidance range.  

The revised 2022 production guidance reflects the company's assumption that production from its non-operated assets offshore Peninsular Malaysia will now remain shut in for the remainder of 2022, due to ongoing delays in reinstating operations.

"The company is confident that by taking this approach at Montara, the necessary work required to deliver long-term asset integrity can be safely and efficiently completed.  The impact is short-term and there is no reduction in reserves.  As a result, and given its strong balance sheet, the company intends to continue the share buy-back program announced on August 2, 2022," Jadestone said.


Categories: Energy Activity FPSO Production Asia Floating Production Australia/NZ

Related Stories

Vietsovpetro Brings BK-24 Oil Platform Online Two Months Early

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

Technip Energies Gets FEED Job for Inpex’ Abadi LNG Project in Indonesia

Norwegian Oil Investment Will Peak in '25

Saipem Wins FEED Contract For Abadi LNG Project FPSO Module In Indonesia

Seatrium Engages Axess Group to Clear FPSOs for Brazil Deployment

Inpex Picks FEED Contractors for Abadi LNG Onshore Plant

Inpex Kicks Off FEED Work for Abadi LNG Scheme Offshore Indonesia

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Current News

How Hot Is Your Cable? Understanding Subsea Cable Thermal Performance

Sponsored: UAE Breaks Ground on GW-Scale Renewable Energy Hybrid

Pertamina Joins Petronas in Ultra-Deepwater Asset off Indonesia

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Southeast Asia’s 2GW Cross-Border Offshore Wind Scheme Targets 2034 Buildout

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

US Pressure on India Could Propel Russia's Shadow Oil Exports

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

RINA Wins FEED Contract for Petronas’ Flagship CCS Project in Malaysia

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