Jadestone Energy, an Asia-Pacific focused oil and gas company, has shut down production at its Stag field offshore Australia after Cyclone Narelle caused damage to platform and offloading facilities.
The company said operations were halted on March 23 and the platform was demobilized ahead of the storm, which intensified into a Category 5 system with wind speeds exceeding 200 km/h.
After returning to the facilities on March 28, Jadestone observed storm-related damage and is now assessing the extent of the impact while preparing repair plans and a timeline for restarting production.
The company said export lines were cleared of hydrocarbons before the shutdown and no releases to the environment occurred, adding the Australia’s offshore regulator NOPSEMA was also notified.
Jadestone said it has insurance coverage for both physical damage and loss of production income and does not expect a material financial impact on its current year or longer-term cash flow projections based on available information.
Prior to the shutdown, the field was producing around 2,000 barrels of oil per day.
Stag, which Jadestone acquired in 2016, is located about 60 km offshore Western Australia in the Carnarvon Basin and is developed with a fixed platform connected to shuttle tanker export infrastructure.