Jadestone Energy PLC on Wednesday said that its ballast water tank at the Montara venture, located offshore Australia, is expected to return to service.

Jadestone is an oil and gas production company focused on the Asia-Pacific region. Shares in the firm were up 20% at 26.45 pence each in London on Wednesday morning.

Inspections in the ballast water tank, 4P, have been completed at the Montara floating, production, storage and offloading facility. Two minor repairs are due to be carried out over the coming days, after which Jadestone expects to return the tank to service.

Meanwhile, oil in tank 5C has been offloaded into a shuttle tanker and cleaning of the tank is ‘well advanced,’ Jadestone said.

It added: ‘The offload of the oil from tank 5C has permitted re-entry into tank 4S, with inspections now underway.’

Jadestone does not expect production at Montara to be shut for more than 60 days, referring to its August 10 announcement which disclosed the temporary closure.

In July, production at the company’s Montara venture in offshore Australia was temporarily shut in following a gas alarm within the 4S ballast water tank. Back then, Jadestone said that an inspection has identified the location of a small defect between tank 4S and oil cargo tank 5C, which poses no safety or structural risk, nor any risk of a hydrocarbon leak to sea.

The company will release an update on Montara next week.

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