Jadestone assessing more drilling targets offshore Malaysia

Jan. 19, 2024
Jadestone Energy plans to step up production drilling offshore Peninsular Malaysia, while focusing on repair and maintenance work offshore Australia.

Offshore staff

SINGAPORE — Jadestone Energy plans to step up production drilling in the PM323 license offshore Peninsular Malaysia after strong results from last year’s four new infill wells.

These are currently producing at a combined rate of about 7,000 bbl/d, with signs that the EBA-15ST2 well in the southwest of the East Belumut Field has intersected a previously undrained area.

Studies suggest opportunities for maximizing recovery could justify an extension to the license beyond the current cut-off point in June 2028. Jadestone sees potential to access up to 8 MMbbl through continued drilling.

Its next planned infill campaign should start in 2025, both on East Belumut and the Piatu Field in offshore PM329 PSC. Subsurface, drilling and technical studies are underway to firm up target locations for the wells.

Offshore northwest Australia, the company foresees a need for higher levels of repair and maintenance activity in the future at the Montara and Stag fields to keep the facilities serviceable over their remaining life.

At Montara, it has screened options for either replacing or dry-docking the FPSO, the most viable approach appearing to be persevering with the existing mode of operations combined with increased maintenance.

This will raise operating costs, which will be compounded by the need for an unplanned sidetrack of the Skua-11 well and to replace the FPSO’s anchor chains. Skua-11 has been offline since last October; the sidetrack will target added oil volumes close to the existing location.

Jadestone currently estimates opex costs for Montara this year at about $120 million, easing back to an average of $95 million/year thereafter in the run-up to likely cessation of production in 2030. Stag opex costs this year will be close to $70 million, declining to about $60 million annually until the anticipated end of field life in 2035.