Jadestone to re-issue FPSO tender for Vietnam gas project

Singapore’s Jadestone Energy is preparing to re-issue a tender for an FPSO vessel for a project offshore Vietnam, which was delayed last year due to challenging market conditions.

In an update on Friday, Jadestone said it is returning to a phase of active investment into its assets, including drilling, well workovers, and pre-development activities relating to its gas projects in Indonesia and Vietnam.

Jadestone noted it continues to collaborate with Petrovietnam regarding its planned gas development at Nam Du and U Minh, offshore Vietnam.

To remind, in the absence of the receipt of the Vietnamese Government approvals of the field development plan (FDP) for the Nam Du and U Minh gas field developments, Jadestone decided in March 2020 to delay this project.

The Nam Du discovery is located within Block 46/07 PSC on the north-eastern margin of the Malay-Tho Chu Basin, approximately 200 kilometres offshore Vietnam in a water depth of 47.9 meters.

The company revealed that its approach is to agree on a gas production profile for the development as a precursor to a gas sales contract and ultimately attaining government sanction for the field development.

Concurrently, Jadestone is preparing to re-issue the related FPSO contract tender.

According to information on Jadestone’s website, the expected first gas date for the project will be no earlier than late 2022.

Paul Blakeley, President and CEO commented: “With renewed optimism on both oil prices and the overall state of the global economy early in 2021, we are resuming the highest return investments in our portfolio”.

The company further pointed out it is maintaining a conservative approach to its capital structure and remains focussed on preserving balance sheet strength.

With a virtually debt-free balance sheet, Jadestone plans to pursue further inorganic growth options amidst a backdrop of a growing set of attractive opportunities.

Looking at 2021, Jadestone provided its guidance for the year, including average crude oil production between 11,500—13,500 bbls/d.

This is assuming the successful drilling of H6 at Montara, two Skua well workovers, and completion of the company’s acquisition of a 69 per cent operated interest in the Maari asset, offshore New Zealand, at the end of H1 2021.

Jadestone’s spending for 2021 is set at $85—95 million, including drilling the H6 infill well and conducting workovers on the Skua SK10 and SK11 wells at Montara.

Blakeley added: “The measures we put in place to protect our balance sheet last year have set the stage for us to move forward with key projects, including drilling the H6 infill well at Montara and conducting well workovers to restore production capacity at the Skua field, where we have had two key wells offline due to identified problems within the wellbores.

“The wells will be worked over utilising the same drilling rig that will drill H6. With the arrival of the Valaris 107 rig, expected in June 2021, we are anticipating a step change in production, weighted to the second half of the year”.