Montara

Location and Geology

The Montara oil field is situated in the Timor Sea, approximately 650 km west of Darwin, Northern Australia, and 250 km north of the Truscott airbase.

• The field is located in a water depth of about 80 meters, with an oil column of 10 meters and a gas column of 25 meters.

Discovery and Ownership

• The Montara oil field was first discovered in March 1988 by BHP Billiton.
• In September 2003, Australian oil project developer Coogee Resources took over as the operator of the field.
• In December 2008, PTT Exploration & Production (PTTEP), a Thailand-based petroleum and natural gas explorer, acquired Coogee Resources for $170 million, gaining 100% control over the Montara development project. The company was subsequently renamed PTTEP Australasia (PTTEP AA).

Field Characteristics

• The Montara oil field has recoverable reserves of 24 million barrels and is expected to produce 35,000 barrels of oil per day (bopd) of light, low-sulphur crude.
• The field includes four oil-producing wells, including a gas re-injection well, and has an estimated production life of 12 years.

Infrastructure

• Montara Venture FPSO: The project utilizes a Floating Production, Storage, and Offloading (FPSO) unit named Montara Venture. This FPSO was converted from a tanker by Tanker Pacific at Jurong Shipyard in Singapore in 2009. It has a storage capacity of 900,000 barrels of oil and can handle 40,000 bpd and 60 million cubic feet per day of gas compression for re-injection/lift.
• Wellhead Platform: The Montara wellhead platform is a four-level, 750-ton platform capable of supporting five production wells and one gas-injection well, with an additional slot for future wells and the capacity to accept a subsea tie-back.

Development Phases

• The development of the Montara project was planned in two phases. Phase one involved the development of six production wells and one gas injection well, while phase two included the development of three additional production wells. The wells from the Montara, Skua, Swift, and Swallow fields are tied back to the Montara wellhead platform and the Montara FPSO.

Operational History and Incidents

• Initial Production Delays: Production was originally expected in 2008 but was delayed to 2010 due to the change in ownership and subsequent technical issues. The final phase of drilling and running completions was scheduled for 2011.
• Montara Oil Spill: On 21 August 2009, a significant oil and gas leak occurred from the Montara wellhead platform, resulting in one of Australia's worst oil spills. The leak continued until 3 November 2009, when it was finally stopped by pumping mud into the well and cementing the wellbore. The spill released between 1.2 to 9 million US gallons of oil into the Timor Sea, affecting an area of approximately 6,000 km².
• Fire Incident: During an attempt to plug the leak, a fire broke out at the West Atlas oil rig and the Montara wellhead platform on 1 November 2009. The fire was eventually controlled, but the incident further delayed the project.

Current Operations

• In September 2018, Jadestone Energy acquired the Montara oil project from PTTEP for $195 million. Despite the acquisition, the Montara Venture FPSO has continued to face operational challenges, including recent oil spills and shutdowns. Jadestone has been working to address these issues as part of its ongoing maintenance and inspection program.

Safety and Regulatory Actions

• Following the 2009 oil spill, PTTEP AA implemented a nine-point Action Plan to enhance safety standards and operational practices. This included removing drilling supervisors and management associated with the incident and strengthening the accountability and oversight of critical offshore operations.
• The Australian Government conducted a Montara Commission of Inquiry into the causes of the incident, which identified deficiencies in PTTEP AA's operations and led to significant changes in their safety protocols.

Fields Included

The Montara development project encompasses several fields:

• Montara Field: The primary field with four oil-producing wells and one gas re-injection well.
• Skua Field: Tied back to the Montara wellhead platform.
• Swift Field: Tied back to the Montara wellhead platform.
• Swallow Field: Tied back to the Montara wellhead platform.

In summary, the Montara oil project has faced significant challenges, including delays, major oil spills, and operational issues with the FPSO. Despite these challenges, the project continues to operate under the management of Jadestone Energy.