Serica Energy flags Triton FPSO compressor issue

LONDON - Serica Energy plc (AIM: SQZ) has reported an interruption in production at the Triton Floating Production Storage and Offloading (FPSO) facility due to a technical problem with its gas compressor. The issue was detected on October 26 when a potential dry gas seal failure occurred in the 'A' gas compressor. Dana Petroleum, the FPSO operator, confirmed that there was no hydrocarbon leak as a result of this incident and is currently assessing and addressing the necessary repairs.

This operational setback has led Serica to adjust its full-year production forecast for 2024. Previously, the company aimed for production towards the lower end of the 41,000 to 46,000 barrels of oil equivalent per day (boepd) range. However, due to the Triton FPSO downtime, production is now expected to fall slightly below these levels.

Serica had announced on October 2 that maintaining its full-year production guidance depended on sustained production levels of around 50,000 boepd in the fourth quarter. In light of the current situation, the company is taking steps to mitigate operational risks by bringing a second compressor online at the Triton FPSO. This initiative is likely to be postponed to the first quarter of 2025 due to the repair work on the 'A' compressor.

Despite the challenges at Triton, Serica's other assets are performing as anticipated, with cash flow benefiting from the recent surge in gas prices. The average market gas price for the month to date stands at 97.9 pence per therm, marking the highest level for 2024 so far.

The company plans to provide a trading and operations update in mid-November, by which time it expects production at the Triton FPSO to have resumed. Additionally, Serica anticipates the commencement of production from the GE-05 well on the Gannet field, in which it holds a 100% interest, shortly after Triton's return to operation.

The information in this article is based on a press release statement from Serica Energy plc.

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Source: Investing.com