Serica Energy Says Work Continuing On Blocked Gas Condensate Pipeline

9th Mar 2018 12:44

LONDON (Alliance News) - Serica Energy PLC said Friday it is making progress on unblocking a condensate pipeline in the UK North Sea, as it continues to work on completing the acquisition of three oil fields.

In January, Serica announced a blockage on the Lomond to Everest condensate export pipeline. It said communication has been made through the blockage after the use of specialist pumping equipment, and the plan is to continue with pressure pulsing until a breakthrough is achieved.

In the meantime, Serica said it is working on a permanent solution to the pipeline's wax problem.

Since restarting production in January, after shutdown due to a crack in the Forties pipeline, the Bruce, Keith, and Rhum fields have been producing an average of 16,000 barrels of oil equivalent.

Serica is acquiring BP PLC's stake in these fields, as previously announced, and expects the deal to complete in the third quarter of 2018. Serica will get 40% of net cash flow from the fields in 2018, rising on an incremental basis to 100% by 2022.

Shares in the company were down 3.0% on Friday at 72.01 pence each.

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