Tuesday, November 26, 2024

Serica Energy cuts full-year production outlook on Triton outage

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(Reuters) – UK’s Serica Energy said on Tuesday it expects full-year production to be lower than its previous forecast, following an outage at its Triton hub in the North Sea.

Following the suspension of production at Triton on Oct. 26, there has been an extended outage that resulted from problems with the gas export compression availability, Serica said in a statement.

The Triton floating production storage and offloading (FPSO) vessel earlier had a problem with the single gas compressor, the company said last month.

Serica added on Tuesday that the necessary repairs on the compressor have been completed and production is anticipated to begin this week.

“The operational vulnerability remains until the ongoing maintenance works are completed, which is likely to be in Q1 2025.”

“We expect the challenging period in 3Q/4Q to improve by year-end, but the cuts are likely to impact our FY25E estimates as well,” analysts at Peel Hunt Research said.

“Although not anticipated, further interruptions a possible until redundancy with the gas export compressors is re-established in 1Q25.”

Production for 2024 is expected to be around 37,000 barrels of oil equivalent per day (boepd), compared to the previously forecast range of 41,000-46,000 boepd.

In October, Serica said it was expecting production for the year to be slightly below the previous range.

(Reporting by Arunima Kumar in Bengaluru; Editing by Rashmi Aich)

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