Skip to content
Energy, Finance Investment


Friends of the Earth Australia 2 mins read
Montara FPSO


The emergency shut down of a massive floating gas production, storage and uploading vessel (FPSO), due to safety concerns, has shed a light on the tenuous financial position of the company that owns it.

The Singapore-headquartered Jadestone Energy company is reported to have a net cash position of just US$7.1 million, with just US$35 million in standby working company.

Jadestone shares lost more than 30% of their value today after the Montara FPSO was shut down due to a gas leak.

Should Jadestone fail, a billion-dollar cleanup cost for the field will be foisted upon the Australian taxpayer.

It’s happened before, when the small firm that Woodside sold the Northern Endeavour FPSO to collapsed, leaving the Australian public to foot the bill for an almost billion-dollar cleanup.

Friends of the Earth Offshore Fossil Gas Campaigner Jeff Waters said it is just another example of how the gas industry is taking the Australian public for a ride.

“Here we have another example of a company that hasn’t factored the massive costs of decommissioning offshore assets into their balance sheets,” Jeff Waters said.

“They spend years making massive profits sucking methane out of the ocean floor — profits which, in this and most cases, end up in other countries — but then leave the rusting hulks for Australian taxpayers to clean up.”

Waters said the existing temporary offshore decommissioning levy, which was imposed on the entire offshore industry to pay for the Northern Endeavour cleanup, should be extended and increased to finance the cleanup of the Montara FPSO.

“How and why could a company be allowed to operate a massive gas extraction facility without the funds to ensure they could clean up afterwards?” Jeff Waters asked.

“It just goes to show how much this climate-killing industry gets away with in Australia, and how governments have been captured by the corporate fat cats that run them.

“The government says so-called “trailing liability” will ensure that someone is held to account for the cleanup costs, but how can that possibly be imposed upon a foreign-based company outside of the jurisdiction of Australian courts?”

“This is another Northern Endeavour in the making, and governments are just sitting back and letting it happen.”



Key Facts:

- Jadestone's Montara FPSO shut down

- Jadeston doesn 't have the cash to clean up the site

- Aust. taxpayers likely to foot the cleanup costs

Contact details:

Jeff Waters

Friends of the Earth Australia Offshore Fossil Gas Campaigner

0498 111 261


More from this category

  • Energy, Government NSW
  • 23/05/2024
  • 15:01
Healthy Futures

Health Workers Call for Renewable Future, criticise Coal Bailouts

Healthy Futures is deeply disappointed at today's announcement that NSW Premier Chris Minns is extending the life of Australia's largest coal-fired power station. Last year, Healthy Futures on behalf of a number of peak health organisations in NSW, wrote to the NSW Government urgently asking for the replacement of fossil fuel based energy with renewable energy as fast as possible, and not to extend Eraring’s operations. The news that Eraring will continue to operate past its planned closure date, with public money, comes just weeks after G7 nations announced a historic and much needed commitment to phasing out coal power…

  • Finance Investment
  • 23/05/2024
  • 12:47
Salt & Lime

Salt & Lime and iPartners Strike a $100 Million Private Credit Facility Deal to Champion Consumer Lending Growth

Financial education first consumer lender Salt & Lime has locked in a new $100 million private credit facility with leading Australian private credit provider iPartners. The deal will support Salt &Lime’s strong growth in lending through mortgage and finance brokers and direct to consumer channels. Salt & Lime is a socially responsible consumer finance lender with an education first approach to customers. Salt & Lime provides rate reducing loans to customers as they complete financial education modules on topics ranging from household budgeting to how lending works. iPartners is Australia’s leading private credit provider with a bespoke technology platform forinvestors…

  • Contains:
  • Energy, General News
  • 23/05/2024
  • 11:28
Parents for Climate

Eraring extension risks higher power bills and kids’ health

May 23, 2024 Parents for Climate is appalled by the NSW Government’s decision to back coal instead of clean energy by extending the life of Australia’s largest coal-fired power station, Eraring, near Newcastle. Nic Seton, CEO for Parents for Climate said: “This go-slow decision on climate action undermines investment in clean energy and increases dangerous climate pollution that is harming NSW families now. Families struggling with bills want to see governments invest in long-term solutions that lower electricity bills, not expensive delays to our clean energy transition. “We know that clean energy is the best way to reduce power bills…

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.