[Timor Sea] Montara

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escveritas
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[Timor Sea] Montara

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The Montara operations involve the extraction of oil using platform production wells for the Montara field and subsea production wells for Swift, Skua and Swallow fields. The oil from the subsea wells transported via subsea flowlines to an unmanned Wellhead Platform (“WHP”) and then to the Montara Venture Floating Production Storage and Offloading (“FPSO”) facility which acts as a hub for the Montara cluster, and potentially more stranded discoveries in the region. Producing sandstone formations include prolific Plover, Montara and Lower Vulcan formations. All producing formations have high permeability (0.5 – 4 Darcy) and high porosity (18 – 24 per cent).

The Montara assets have gross 2P reserves of 28.2 MMbbls oil (gross and net) and 3P reserves of 38.5 MMbbls oil (gross and net), split as follows between the fields:
  • the Montara field, located in production licence AC/L7 has 14.9 MMbbls of gross and net 2P reserves;
  • the Skua field, located in production licence AC/L8 has 6.9 MMbbls of gross and net 2P reserves; and
  • the Swift/Swallow field, located in production licence AC/L8 has 6.4 MMbbls of gross and net 2P reserves.
Current production from the Montara Project is 10.3 mbbls/d.

Jadestone sees significant further value in the Montara Assets. The Company has identified several different areas in which it believes it can potentially realise value in the future. These include:
  • Further infill drilling, not included in ERCE’s reserves case, have been identified by Jadestone management in the Montara and Skua fields. This includes one further platform well on the Montara field which would be a sidetrack of H4, capturing remaining volume along the northern bounding fault, and two further subsea wells on Skua capturing volumes further north along the crest. Each of these wells would have an initial rate of 3 mbbl/d and targeting a combined volume of 5.3 MMbbl;
  • Tie-back additional existing in-field and near-field discoveries as facilities become available, currently the well head facilities are either fully utilised or allocated to existing and near-term production;
  • The Company has identified further prospectively in the blocks. The Company intends to shoot 3D seismic surveys over the blocks. This is expected to help to further define the existing prospects and identify further prospects across the blocks which the Company may target in the future;
  • In the blocks neighbouring the Montara Assets there are multiple oil and gas discoveries and previously suspended fields. Many of these discoveries are currently stranded as they are not of a size that can economically justify a standalone development. Currently the Montara Assets infrastructure is the only infrastructure in the area through which these discoveries could potentially be produced. The Company may in the future explore opportunities to monetise these assets which may be through acquisition, farm-in or third party tariff arrangements; and
  • Within the Company’s blocks, there are currently stranded discovered gas resources which are currently not of a size which would make commercialisation economic. However, within neighbouring blocks there are also other similarly stranded gas discoveries and the Company could in the future explore joint development solutions for these discoveries. This will, however, remain subject to pricing, technology and neighbouring activities
escveritas
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Re: [Timor Sea] Montara

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Bangkok, July 16, 2018 – As part of portfolio rationalization, PTTEP announces the divestment of a 100% stake in the Montara field to align with the company’s business strategy aimed to focus on the operations and projects in the strategic locations.

Somporn Vongvuthipornchai, PTTEP Chief Executive Officer, said PTTEP Australasia (Ashmore Cartier) Pty Ltd, PTTEP’s subsidiary, has signed the Agreement for the Sale of Montara Asset to sell a 100% stake in the Montara field to Jadestone Energy (Eagle) Pty Ltd at the purchase value of USD 195 million. However, the value will be adjusted for working capital from the operations until the date of transaction completion expected this year.

Apart from the purchase value, PTTEP will have additional contingent consideration amounts of up to USD 160 million depending on certain production, oil price and future development milestones being achieved.

Completion of the sale is subject to the conditions as prescribed in the Sale and Purchase Agreement, including the Australian regulatory approvals from the National Offshore Petroleum Titles Administrator (NOPTA) and the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).

“The sale of the Montara field is in alignment with our strategic direction in increasing investments in our focused areas in Southeast Asia and the Middle East, where we have experience and expertise. These areas have high petroleum potential, low cost structure as well as low risks that will help us add more petroleum reserves and enhance long-term growth for the company,” Somporn said.

The Montara field is located offshore Australia. The average production volume from the field in the first half of this year is about 7,694 barrels per day.
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Re: [Timor Sea] Montara

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Montara Operations Update
20 June Singapore:

Jadestone Energy plc (“Jadestone”, or the “Company”) an independent oil and gas production company focused on the Asia-Pacific region, provides the following update on operations at the Montara field offshore Australia.

On 17 June 2022 during routine production and crude oil cargo operations, crude oil was being transferred between two crude oil tanks onboard the Montara Venture FPSO. During the transfer, oil was observed on the surface of the sea adjacent to the FPSO. Transfer operations were ceased immediately and production from the Montara fields was shut in as a precautionary measure.

The release of oil to sea was quickly halted by pumping water into the tank, indicating a leak somewhere at the tank base. A subsequent inspection using an ROV confirmed a small 30mm diameter hole in the bottom of the tank. Having now controlled the release of oil, the next step will be to apply a temporary repair in order to remove the remaining oil from the tank. Following this, the tank will be accessed and cleaned in order to complete an inspection and permanent repair. This is the same work plan which has already been applied to all the other main crude oil storage tanks, as part of the five yearly inspection and repair programme which has been underway since Jadestone assumed operatorship of the Montara assets, and which is a normal and accepted process approved by regulators and Class inspectors globally.

The volume of released oil is estimated at three to five cubic metres, which was monitored and had fully dispersed by the morning of 19 June 2022. The National Offshore Petroleum Safety and Environmental Management Authority (“NOPSEMA”) was notified of the incident immediately and will initiate an onsite inspection of the Montara facilities on 21 June 2022.

Jadestone’s preliminary estimate is that it will take approximately four weeks to complete the tank inspection and effect repairs sufficient to re-commence production at Montara, with appropriate isolation of the crude oil tank. Thereafter, following consultation with key stakeholders, a full remediation programme will be conducted, similar to that which has been completed on all the other main crude oil tanks. At this early stage, Jadestone estimates the cost of securing the leak site and permanent repair of the crude oil tank at US$2-3 million. This is consistent with the overall expenditure to date on the tank inspection and repair work, which totals US$11 million over the past three years.

On the basis that full production from the Montara fields can be restarted as estimated, Jadestone expects that full-year 2022 production would be around the lower end of the previously announced guidance range of 15,500 – 18,500 boe/d.

Paul Blakeley, President and CEO commented:

“Whilst we deeply regret this event, immediate and decisive action by the Jadestone team limited the quantity of oil released and made the facility safe, and I commend the work of both the offshore crew and the onshore operational staff for their quick response in managing this incident.

The integrity of our facilities is at the heart of our strategy and this oil tank was due for inspection within the next few weeks as part of our five-yearly maintenance cycle, which would have been the final key step in the significant inspection and repair plan that has been underway on the Montara Venture since we assumed operatorship in 2019. Over this period, we have worked extensively and spent significant sums to restore the vessel and associated infrastructure to the condition required in order to deliver a long, safe and productive field life.

Safety and sustainability are core values for Jadestone, and we will now work closely with the Class inspector, NOPSEMA and other stakeholders to develop and execute a plan to safely and permanently repair the hole in the crude oil tank. There are many precedents for this type of activity, both within the Asia-Pacific region and globally, and we will deploy the necessary expertise to provide confidence in the solution we implement. It’s particularly frustrating for this event to occur so close to the planned inspection and repair activity, but our investment in the facilities to date is bearing fruit, with facility uptime now over 90% and with further improvements in the planning stage.”
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Re: [Timor Sea] Montara

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Production Restart at Montara

23 March 2023 – Singapore: Jadestone Energy plc (“Jadestone” or the “Company”), an independent oil and gas production company focused on the Asia-Pacific region, is pleased to announce that the Montara Venture FPSO (“Montara”) offshore Australia resumed production operations early on Tuesday 21 March 2023.In a carefully planned restart programme, production recommenced from the H6 well on the Montara field, with further wells to follow, including the first Skua subsea well which will be brought on line in the coming days. Production rates will increase with the systematic opening of additional wells in line with the restart plan.The Company will announce its production guidance for 2023 once Montara output is stabilised.Paul Blakeley, President and CEO commented:“I would like to thank everyone in Jadestone who has contributed to the safe and successful restart of Montara operations as we look forward to putting this challenging period behind us and returning to business as usual. It is a relief to see operations at Montara being restored and we look forward to increasing production and cash flow. We also plan to return to growth, having completed three acquisitions within the last six months, with several new acquisition opportunities in the pipeline. Near-term organic growth from the Akatara project remains on track and with our first infill drilling programme in Malaysia, reinforcing the point that 2023 will be a big year for Jadestone.”
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