Serica Energy reduces full-year production forecast due to Triton Outage

Serica Energy, a UK-based company, said Tuesday that it expected full-year production will be lower than previous estimates following an outage in its Triton hub located in the North Sea.

Serica stated in a press release that following the suspension of Triton production on October 26, there was an extended outage due to problems with the compression capability for gas export.

Last month, the company reported that the Triton floating storage and offloading vessel (FPSO), had an issue with its single gas compressor.

Serica said on Tuesday that all repairs to the compressor had been completed, and production should begin this week.

The operational vulnerability will remain until the ongoing maintenance work is completed, which should be Q1 2025.

Peel Hunt Research analysts said that they expect 3Q/4Q's challenging period to improve before year-end. However, the reductions are also likely to affect their FY25E estimates.

Although not expected, there is the possibility of further interruptions until redundancy for gas export compressors can be re-established by 1Q25.

The production for 2024 will be approximately 37,000 barrels equivalent per day (boepd) compared to the previous forecast range of between 41,000-46,000 Boepd.

Serica announced in October that it expected production to be slightly lower than the previous range. Arunima K. in Bengaluru, and Rashmi Aich edited the story.

(source: Reuters)