Jadestone sets up new offtake model for Stag crude oil
Jadestone Energy has set up a new offtake arrangement for the Stag oil field, located offshore Australia, following Altera’s decision to retire the FSO Dampier Spirit, which has been used for offload since the field’s original development.
The Jadestone-owned and operated Stag oilfield produces crude oil via a fixed leg, central processing facility platform.
Since the field’s original development, the oil from the field has been offloaded to floating storage and offloading vessel (FSO), the Dampier Spirit, which is moored to a catenary anchor leg mooring buoy.
The FSO vessel is owned by Altera Infrastructure, formerly Teekay.
In May 2020, the owner of the Dampier Spirit advised Jadestone of its intention to retire the Dampier Spirit later in 2020.
However, as required under the terms of the agreement with Jadestone, the owner has been unable to provide a suitable replacement vessel.
As a consequence, Jadestone has developed a new operating strategy, utilising offtake tankers to directly offload Stag crude oil, in place of the existing long-term leased FSO.
To implement this strategy Jadestone has awarded a contract to an international tanker provider who will supply double-hulled tankers.
This new operating model has significant environmental risk mitigants over the existing model, by eliminating the need for ship-to-ship oil transfers in the field.
New model costs less
According to Jadestone, these arrangements are expected to realise annual savings of approximately 20 per cent over the current FSO operation.
The first offtake tanker is scheduled to arrive in the field coincident with the Dampier Spirit departure in mid-September 2020. Ultimately, multiple offtake tankers will rotate through the field on a schedule that optimises production continuity.
The new model has also required a change to the regulatory structure that was in place for the FSO.
Jadestone said it has worked with Australian regulators, the National Offshore Petroleum Safety and Environmental Management Authority and the Australian Maritime Safety Authority (AMSA) to ensure the model complies with all relevant laws and regulations and to obtain their acceptance.
This includes both the requisite updates to the company’s safety case for the Stag asset and agreement that the vessels should be regulated by AMSA.
Paul Blakeley, President and CEO commented: “I’m delighted with the new offtake arrangements that are being implemented for Stag, which will realise annual savings of approximately 20 per cent over the current FSO operation, and which in turn will enhance the value of our booked reserves“.