Serica Energy UK forecasts production increase for 2025

Serica Energy, a UK oil and gas company focused on the North Sea, expects to increase production by 15.6% in 2025, thanks to improved reliability, the company said Tuesday.

Serica has increased production by acquiring and investing in the past few years.

The company's output was affected by an outage on its Triton floating storage and offloading vessel (FPSO) in the North Sea, in 2024.

Serica stated in a press release that production has increased since the resumption.

Chris Cox, CEO of Triton said that the five-well drilling program at Triton has now reached half way and is delivering excellent results.

"We anticipate substantial cash generation by 2025, which will allow us to deliver material direct returns to shareholders while continuing to invest in our portfolio in order to unlock additional value."

Cox said that the company is continuing to look at a variety of mergers and purchases as part of its efforts to drive growth.

Peel Hunt analysts stated in a report that Serica is well positioned to deliver growth year over year and distributions for shareholders.

The company anticipates a production of 40,000 barrels equivalent per day in 2025, up from 34.600 boepd.

Serica said that production will be weighed towards the first half of this year. Maintenance programmes at Bruce Hub and Triton FPSO are expected to shut down production in the third quarter, for 12 days and 45 days respectively. (Reporting by Arunima Kumar in Bengaluru. (Editing by Rashmi aich and Mark Potter.)

(source: Reuters)