Page 19 - AsianOil Week 27

AsianOil NEWS IN BRIEF AsianOil

technical personnel to Yinson’s project team
in Singapore from this year onwards. “K”
Line intends to expand FPSO business with
Yinson and Sumitomo as a core business which
generates long term and stable profits, and utilize
the accumulated know-how in the succeeding
FPSO projects and new energy related
businesses.
K LINE, July 9, 2020

OCEANIA

Mahalo Gas project
receives petroleum lease

approvals
Arbitration commences EAST ASIA Comet Ridge is pleased to announce that the
over Vietnam acquisition Participation in FPSO Mahalo Gas Project (MGP) has been granted
Queensland State Government Petroleum
Jadestone Energy, an independent oil and Owning and Chartering Leases (PLs) 1082 (Humboldt) and 1083
gas production company focused on the (Mahalo). These have been issued for a term
Asia Pacific region, announces that it has Business for Marlim II of 30 years.
commenced arbitration proceedings against The MGP is located inside the northern part
Teikoku Oil (Con Son), a wholly-owned Project, Offshore Brazil of the ATP 1191 area. This project is held 40%
subsidiary of Inpex, in respect of Jadestone’s by Comet Ridge Limited, 30% by Santos and
acquisition of an interest in Block 05-1 PSC, Kawasaki Kisen Kaisha (’K’ Line) has 30% by APLNG (where Origin Energy is the
offshore Vietnam. concluded agreements with Yinson Acacia development Operator).
On August 9, 2016, Jadestone, as buyer, Ltd, a wholly-owned subsidiary of Yinson These Petroleum Lease awards are the final
signed a definitive sale and purchase agreement Holdings, a Malaysian energy services regulatory approval required for the project to
(SPA) with Teikoku, as seller, for the acquisition provider and Sumitomo Corporation, to move forward to production and follows the
of a 30% working interest in Block 05-1 PSC, for participate in the floating production, Commonwealth Government Environment
a total cash consideration of US$14.3 million, storage and offloading (FPSO) owning Protection and Biodiversity Conservation Act
subject to normal closing adjustments. and chartering business for the Marlim (EPBC) approval in May and the Queensland
On February 22, 2018, Inpex delivered to II Project, offshore Rio de Janeiro, Brazil. Department of Environment and Science
Jadestone a purported notice of termination of The Marlim field is operated by Brazilian environmental approval in June.
the SPA, despite Teikoku having just received on national oil company Petrobras. Upon stable Comet Ridge Chairman, James McKay said
February 9, 2018, (i) the waiver by Petrovietnam operations of the FPSO being achieved in Comet Ridge and its partners have undertaken
of their statutory pre-emption rights, held 2023, “K” Line will have around a 10% stake many years of exploration, appraisal and
under Vietnamese law; and (ii) direction from in the FPSO venture. development planning activities to prove up
Petrovietnam to complete and submit all The FPSO is planned to serve the Marlim Mahalo as a valuable development-ready gas
documents necessary to effect the transfer of oil and gas field revitalization project, which project and he was very pleased the project now
interest to Jadestone. As noted in our press release is operated by Petrobras and situated 150 has full regulatory approval to be able to realise
of February 26, 2018, the Company has not kilometers off the Brazilian coast in the full value for the asset.
accepted Inpex’s alleged termination, and views the Campos Basin. Both entities which have He added: “The Mahalo Gas Project is well
both parties’ obligations under the SPA as continuing. entered into the time charter agreement positioned to deliver meaningful gas production
Jadestone and Inpex engaged in negotiations and service agreement with Petrobras for into the domestic and export market as part
over an extended period in 2018 and 2019, the owning/chartering and operation/ of an emerging greater Mahalo fairway. The
which the Company pursued with the objective maintenance of the FPSO are currently co- streamlined approval process shows it has the
of securing its interest in Block 05-1 PSC. owned by Yinson and Sumitomo. Operations support of the Queensland government and we
Jadestone has assessed its options, including is expected to commence by first quarter of look forward to working with our joint venture
advice from Queen’s Counsel, as the SPA is 2023, with a 25-year charter period thereafter, partners in progressing Mahalo towards a Final
subject to English law, and has determined that it with no options for extension. Investment Decision.”
is in the best interest of shareholders to challenge This project represents “K” Line’s second Work is also continuing at Comet Ridge’s
Teikoku’s purported termination of the SPA, and FPSO business following the offshore Ghana 100% owned Mahalo North project including
to seek specific performance by Teikoku to fulfil oil and gas field development project based on seismic interpretation to optimise drilling
its obligations under the SPA. To that end, the the partnership with Yinson and Sumitomo, locations, so that Mahalo North is development
Company has filed a notice of arbitration with in which the company participated in 2018, ready and can be quickly tied into either
the Singapore International Arbitration Centre and “K” Line will efficiently accumulate the the Mahalo Gas Project or other nearby gas
in accordance with terms of the SPA. knowledge and expertise of operation and processing and pipeline facilities.
JADESTONE ENERGY, July 3, 2020 maintenance of FPSO by dispatching its COMET RIDGE, July 7, 2020

Week 27 09•July•2020 www. NEWSBASE .com P19