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Jadestone Energy announces readiness of Montara asset for production restart

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Oilfield Technology,

Jadestone Energy Inc. (‘Jadestone’ or the ‘Company’) has announced the completion of works required for the restart of production from the Montara oilfield, following an extensive maintenance and inspection shutdown.

Production restart plan

Work has been completed and the facilities are undergoing the final stages of pressure testing to ensure asset integrity and a safe restart of production. The oil train has been successfully leak tested and the gas train is now being tested so that both can start together, enabling immediate gas-lift and gas re-injection so as to optimise production operations, as rapidly as possible. The documentation required to lift the various improvement notices, prohibition notice and direction letter issued by NOPSEMA, are in the process of being evaluated by the regulator to allow the facility to reintroduce hydrocarbons. That close-out is anticipated within days. The conclusion of this maintenance and inspection activity will result in improved facility reliability and uptime going forwards, resulting in no major planned shutdowns until at least H2 2020.

Jadestone and PTTEP are continuing to manage the asset under the terms of the operator and transitional services agreement whereby PTTEP, as the duty holder under the currently in-force safety case, continues to operate the Montara assets, while all critical leadership positions in the operation are now filled with Jadestone secondees. In the meantime, the regulator is reviewing Jadestone’s recently submitted Montara safety case and environment plan. Upon acceptance of these, the regulator will then permit the transfer of operatorship to Jadestone.

Paul Blakeley, President and CEO commented:

“I’m pleased that the shutdown of the Montara assets has been safely concluded, which now completes all overdue inspection and maintenance items which we identified during the initial weeks after closing the transaction with PTTEP. During the shutdown, Montara personnel logged more than 9000 hours of work, all executed without a single safety incident. This is a testament to the calibre of expertise on the asset and the leadership we have now seconded into the Montara organisation, and a key early step toward embedding the Jadestone operating philosophy and safety culture on the asset.

“In addition to resolving the regulatory non-compliance notices, which in our view now safeguards the integrity and reliability of the Montara assets, we have worked closely with NOPSEMA, the offshore regulator, to satisfy their concerns as laid out in Direction Notice 0732, and are waiting for their final support to a full restart of production.”

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