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Jadestone drops plans to buy OMV's stake

in the Maari field off New Zealand

INVESTMENT AUSTRIA’S OMV has dropped plans to divest company,” he said.
its 69% interest in the Maari field off the coast of Jadestone had previously pointed to the
The deal was signed New Zealand to Asia-focused Jadestone Energy opportunities that Maari represented for invest-
three years ago. because of regulatory delays – a deal that the pair ing in maximising recovery and extending the
agreed to enter into in 2019. field’s lifespan, giving its large in-place resources
Jadestone said in a statement last week that and its currently low recovery factor.
it had engaged with OMV following changes to Elsewhere, the company flagged up good pro-
New Zealand’s upstream regulatory framework gress it was making on other fronts.
at the end of last year, and had also worked with “We now have a clearer path towards com-
the government to seek clarity on the processes, pleting the repairs on the Montara Venture FPSO
terms and associated timeframe needed to com- and we will provide a more detailed update on
plete the deal. Because of a lack of progress in this soon,” Blakeley said.
securing regulatory approval, and uncertainty The FPSO is used to produce oil from the
about when that approval will arrive, the two Montara, Swift, Skua and Swallow fields in the
companies have “reluctantly” decided to termi- Timor Sea off the coast of Western Australia.
nate the deal, Jadestone said. Jadestone shut down production at the facility in
“Whilst disappointing, we have been signal- August to repair a minor oil leak and undertake
ling that the lack of progress on Maari was an additional inspections.
increasing concern and today, almost twelve Blakeley also said that an infill drilling pro-
months after the new legislation came into effect, gramme was progressing well at the Stag oil asset
there is still little to no clarity on what is required in Australia’s Carnarvon basin, with the first well
from Jadestone to receive the necessary govern- now at the completion stage and the second to
ment approval to complete the deal,” company reach the reservoir interval soon. The Aktara gas
CEO Paul Blakeley commented. development in the Lemang production-sharing
Almost three years after the acquisition was contract (PSC) off Indonesia remains on track,
announced, and with the licence for Maari due and Vietnam's gas sales discussions with the end-
to expire in 2027, “this leaves insufficient time user are making progress, he said.
to confidently invest in the asset and therefore, “The completion of the North West Shelf
despite our best efforts, it is now time to move oil acquisition from BP is still expected this
on,” the CEO continued. quarter, as is the acquisition of the remaining
He added that there were a growing number 10% interest in the Lemang PSC,” he contin-
of other inorganic growth opportunities in the ued. Finally, there are a number of inorganic
wider Asia-Pacific region, and so “Jadestone opportunities across the Asia-Pacific region
cannot continue to spend time and resources on which are under evaluation. Overall, the out-
the Maari process, and we are firm in the belief look for Jadestone remains positive and we are
that this decision is in the best interests of the excited for the future.” ™

Week 43 31•October•2022 www. NEWSBASE .com P7