Another Step Forward for Refine Energy and RCMA
DATE: 20 November 2018
By Lachlan Pressland
On 5 June 2018, Qld-based oil and gas management company, Refine Energy, signed a landmark deal with international commodities major, RCMA. The contract sees Refine Energy managing RCMA’s WA upstream assets, principally the Jingemia production facility, located near Dongara in Western Australia. The contract was one of the first of its kind for the oil and gas operator, Refine Energy.
Refine Energy specialises in management of Australian onshore oil and gas upstream exploration and production facilities and has developed their own in-house approach and management system to deliver a low cost operating model whilst assuring overall asset compliance with local, state and federal regulations.
The RCMA group is a global suppliers and commodities manager, dealing in a range of various commodities, including energy.
Refine Energy plans to review plant operations now and into the future to drive asset performance improvement across the broad areas of compliance, production, costs and integrity and is proud to operate such a promising asset.
CEO Adam Stepanoff is keen to improve the operations, saying,
“Refine Energy has implemented an efficient low-cost operating model for the Jingemia oil & gas assets which was business critical for such mature assets and was missing from the Perth Basin. Our objective is drive operating costs down below A$20/bbl. We believe at this level a number of what were previously suspended or non-economic assets become commercially viable.
RCMA too looks forward to making use of the experience and talent of the Refine team and has already been seeing the rewards of improved performance with a 40% reduction in plant OPEX, production increasing from circa 65 bopd to over 250 bopd. Already the asset is seeing a 40% reduction in plant OPEX and a stunning increase of production, exceeding 200% of total after only 4 months of operation. Further improvements are planned to boost production and reduce costs.
RCMA’s Director of Oil and Gas Chris Newport has said of Refine Energy,
“RCMA in early 2018 directed Refine to focus on improvement in the Jingemia field, and on plant and compliance performance through the use of best in industry practices, science and mature oil field efficient work practices, and Refine has delivered. We look forward to working with the Refine team in 2019”.”
This deal is the first of many steps forward for both companies and illustrates the innovative approach of the Refine Energy to asset management.