UK's Serica Energy reduces production forecast for 2025 due to 'frustrating Triton' issues

Serica Energy, a British oil and natural gas company, lowered its production forecast for 2025 on Tuesday due to delays at its Triton floating storage and offloading unit (FPSO) in the North Sea.

The shares of the London listed firm dropped as much as 7.5%, to 124.2 pence.

Serica increased its production in recent years through acquisitions, investments and other means. However, in 2024 it will face challenges due to a failure at the Triton FPSO.

Triton's problems have made the start of this year frustrating. "While the first half of the year is disappointing, the second should be fantastic," CEO Chris Cox said in an interview.

Originally, it was expected that the critical repairs to Triton caused by Storm Eowyn's damage in January would be completed between mid- and late-March. Production was to resume in May.

Serica announced on Tuesday that it expects production to resume at Triton in June, as its joint venture partners have accelerated the schedule for summer maintenance. It added that no further shutdowns are planned for 2025.

The company has revised its production forecast for the year to 33,000-37,000 barrels equivalents (boepd), down from 40,000.

The production in 2024 dropped to 34,600 boepd, from 40,100 Boepd.

The results are in the context of Britain's windfall taxes, which has pushed some

Companies that sell assets

Diversification of operations in other regions and mergers with others.

Serica, the company that is in talks with EnQuest about a potential deal, has declined to provide an update ahead of EnQuest's deadline on April 4, when it must make an offer. (Reporting and editing by Sherry Jacobi-Phillips, Joe Bavier, and Anandita Mehrotra from Bengaluru)

(source: Reuters)