Jadestone Energy has shut in production at its Montara oilfield offshore Australia after oil was spotted on the surface of the sea next to the floating production, storage and offloading vessel during routine operations.

The crude leak leaves the Singapore-headquartered independent with a repair bill of up to US$3 million and the prospect of a month-long shutdown at Montara, which will take its toll on full-year production.

Jadestone confirmed that on 17 June when crude was being transferred between two tanks onboard the Montara Venture FPSO, oil was seen on the surface of the sea and transfer operations were halted immediately with production from the Montara fields being shut in as a precautionary measure.