18th Oct 2018 11:15
LONDON (Alliance News) - Serinus Energy PLC said Thursday it is still waiting on permission from the Romanian government to start experimental commercial gas production at the Moftinu gas plant, as it expects to restart Tunisian production in the first quarter of 2019.
Serinus Energy shares were down 9.1% in midday trading at 15.00 pence each.
The upstream oil & gas exploration & production company said the Moftinu gas plant is completed and able to operate at pressure with sustained production but is waiting for the installation of a low temperature separation unit and a triethylene glycol unit.
Since August the company has been waiting for access codes from Romania's national pipeline operator, Transgaz, to start production during the commissioning of the plant, as is Serinus's legal right.
Transgaz has denied access for Serinus's gas production, saying the gas quality is not according to its network specifications, due to "minimal quantities of water".
Serinus believes its gas is of "very high quality", in excess of 90% methane, and should be acceptable into the Transgaz system.
According to Serinus, however, Transgaz has maintained that even the "very small" percentage of water, 0.21% maximum said Serinus, means that the gas cannot be injected into the system and that until the new units are in place, no gas sales can be accommodated.
The oil & gas company said it will continue to pursue the acceptance of the gas into the Transgaz system.
In Tunisia, Serinus believes discussion with the authorities has "progressed" and, subject to an administrative procedure settlement, it will be in a position to restart the Chouech Es Saida field in the first quarter of 2019.
The field has been shut-in since 2017 due to "labour unrest" but the company now believe progress has been "sufficient" enough for it to start the tendering process for long lead items and essential production support services.
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