Serica Energy Reports Compressor Issue on Triton FPSO

LONDON - Serica Energy plc (AIM: SQZ) reported a production disruption due to a technical issue with a gas compressor at the Triton Floating Production Storage and Offloading (FPSO) facility. The problem was identified on October 26, when a potential dry gas seal failure occurred in the 'A' gas compressor. The FPSO operator, Dana Petroleum, has confirmed that there has been no hydrocarbon leak as a result, and is currently assessing and addressing the necessary repairs.

This operational setback has led Serica to adjust its full-year production forecast for 2024. Previously, the company was targeting a production range of 41,000 to 46,000 barrels of oil equivalent per day (boepd) towards the lower end of that range. However, due to the interruption at the Triton FPSO, production is now expected to fall slightly below these levels.

On October 2, Serica announced that maintaining full-year production guidance was contingent on achieving sustainable production levels of around 50,000 boepd in the fourth quarter. In light of the current situation, the company is taking steps to mitigate operational risks by bringing a second compressor online at the Triton FPSO. This initiative is likely to be deferred to the first quarter of 2025 due to the repair work on the 'A' compressor.

Despite the challenges at Triton, Serica's other assets are performing as expected and benefiting from the recent increase in gas prices. Since the beginning of the month, the average market gas price has reached 97.9 pence per therm, the highest level so far in 2024.

The company plans to provide a trading and operations update in mid-November, by which time it expects production at the Triton FPSO to have resumed. Additionally, Serica anticipates that production from the GE-05 well in the Gannet field, in which it holds a 100% interest, will commence shortly after Triton restarts operations.

The information in this article is based on a press release from Serica Energy plc.