19th Mar 2025 10:49
(Alliance News) - Serica Energy PLC shares fell on Wednesday after it said output at a floating production storage and offloading asset in the North Sea will not resume before May.
North Sea-focused oil and gas producer Serica noted production had previously been expected to resume in "mid-to-late" March, after repairs following Storm Eowyn in January.
"Following conversations with the operator, Dana Petroleum, regarding the timeline required to deliver the scope of work, production from the Triton FPSO is now not expected to recommence before May," Serica said.
"Due to the ongoing maintenance issues and the performance of the Triton FPSO over the last 12 months, the company is discussing with Dana all options to secure a lasting improvement in the operating performance of the FPSO."
Serica owns 46% of the asset, while Dana Petroleum Ltd, the operator, has a 52% stake. Waldorf Production UK Ltd owns the remainder.
Serica Chief Executive Officer Chris Cox said: "Our frustrations with the ongoing performance of the Triton FPSO have been well documented - it is not good enough for Serica, and it is not good enough for our shareholders. Our drilling results around Triton have been tremendous, and these need to be converted into sustained production and cashflow. We are working closely with Dana to help support them with the current work, and to drive the change required to deliver a more predictable production performance going forward."
During the storm, "sea spray triggered the fire and gas detection system, causing an automatic production shutdown", Serica explained in February.
"Following an initially successful restart on 28 January, it was established that the storm had caused minor damage to one of the cargo tanks which required repair," it explained at the time.
"While preparing to conduct the necessary repairs, Dana Petroleum identified an integrity issue with a coupling in the inert gas line required for purging the tanks prior to carrying out the repairs. Triton has remained offline subsequently pending identification of the root cause of the issue and the best means of resolving it."
Earlier in March, Serica confirmed it was in talks to be acquired by EnQuest PLC in a reverse takeover. EnQuest is an oil and gas company with operations in the UK and Malaysia.
Serica shares were 9.3% lower at 125.69 pence each in London on Wednesday morning. It has a GBP495.8 million market capitalisation. EnQuest has a market value of GBP237.1 million. Its stock was down 1.7% at 12.75p on Wednesday in London.
By Eric Cunha, Alliance News news editor
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