Jadestone Energy, an independent oil and gas production company focused on the Asia-Pacific region, has provided an update on operations at the Montara Venture FPSO offshore Australia.
On 29 July 2023, a gas alarm was triggered within ballast water tank 4S, indicating possible communication with one of the adjacent tanks within the FPSO.
Production from the Montara fields has been temporarily shut in and key stakeholders, including the National Offshore Petroleum Safety and Environmental Management Authority ("NOPSEMA"), were notified of the incident.
Tank 4S will be emptied and cleaned over the next week to permit an inspection to identify the source of the communication between tanks and allow for appropriate repairs. Following the inspection, a further update will be provided outlining next steps, any potential costs and any impact to production guidance.
At 30 June 2023, the Company had c.US$118 million of consolidated cash balances (restricted and unrestricted cash) and c.US$111 million of debt drawn under the Company's reserves-based lending ("RBL") facility, resulting in a net cash position of US$7.1 million. In addition, the Company's US$35 million Standby Working Capital facility remains undrawn.
Paul Blakeley, President and CEO commented:
'While disappointing and frustrating to have to shut in Montara again, we will find and repair any additional defect while continuing with the overall planned programme of inspection of the storage tanks on the FPSO. The safety of our personnel, as well as the long-term integrity of the asset, are paramount. We will provide a further update once the inspection of tank 4S is complete.'
Source: Jadestone Energy
