Jadestone Energy’s Montara oil field located offshore Australia is set to restart after production was halted by offshore safety regulator, the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).

The company noted that all works necessary for the restart of production from the field have completed, following an extensive maintenance and inspection shutdown.

After a wellhead blow-out and subsequent rig fire in August 2009, Montara spilt millions of barrels of oil into the Timor Sea. NOPSEMA subsequently suspended oil production due to several potentially injurious and safety incidents.

Jadestone said that the facilities are currently undergoing the final stages of pressure testing to ensure a safe restart.

“During the shutdown, Montara personnel logged more than 9,000 hours of work, all executed without a single safety incident.”

The company also leak-tested the oil train and will further test the gas train to start both of them at a time.

Jadestone Energy president and CEO Paul Blakeley said: “During the shutdown, Montara personnel logged more than 9,000 hours of work, all executed without a single safety incident.

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“In addition to resolving the regulatory non-compliance notices, which, in our view, now safeguards the integrity and reliability of the Montara assets, we have worked closely with NOPSEMA, the offshore regulator, to satisfy their concerns as laid out in Direction Notice 0732, and are waiting for their final support to a full restart of production.”

Last July, Jadestone acquired the Montara oil project, which is located 180km off the north Kimberley coast, from Thai group PTTEP for $195m.

Both companies are continuing to manage the asset under the terms of the operator and transitional services agreement.