Jadestone Energy Working to Address Tank Defect on Montara Venture FPSO

Asia Pacific-focused Jadestone Energy, which last month shut down production from its Montara Venture FPSO off Western Australia due to an issue with the FPSO's 4S ballast water tank,is still working to address the defect in the tank.

Jadestone Energy said Thursday that since the shutdown, tank 4S has been emptied and cleaned, with an inspection starting on August 8, 2023.

"The initial inspection has identified the location of a small defect between tank 4S and oil cargo tank 5C, which poses no safety or structural risk, nor any risk of a hydrocarbon leak to sea," Jadestone Energy said.

The company is now focused on the final inspections in ballast water tank 4P prior to returning this tank to service as part of the overall ballast and stability requirements for the FPSO; offloading crude oil from tank 5C to allow for cleaning and access to permit an inspection; and re-entry to 4S to finalize the inspection of the tank and carry out the necessary repair.

Jadestone did not say when it expected to resume production from the Montara Venture FPSO.

Jadestone Energy said: "The company continues to keep key stakeholders, including the National Offshore Petroleum Safety and Environmental Management Authority ("NOPSEMA") and its reserve-based lending ("RBL") facility banks, regularly updated on these activities.  The RBL includes the requirement for borrowing base assets, such as Montara, not to have production interrupted for a continuous period of 60 days or more.  The company will also be working with the RBL banks to assess how the shut-in might impact the clauses and covenant under the RBL facility," Jadestone said.

The Montara Venture is located in the Timor Sea, in the Ashmore Cartier territory within Commonwealth waters, approximately 690 km north-west of Darwin and within 34 km of Vulcan Shoal.

Jadestone Energy acquired the Montara oil project from PTTEP in October 2018.