Serica Energy plc (AIM: SQZ) has warned its expected oil and gas production this year will be hit after a failed gas compressor has shut down operations on the Triton FPSO.
The firm, which has a stake in the bub along with operator Dana, said that production has been “interrupted owing to a problem with the single gas compressor in operation”.
However the problem has not caused any oil and gas to be leaked.
Korean-owned Dana Petroleum has operated the Triton FPSO since 2012. It is located approximately 120 miles east of Aberdeen, and produces oil and gas from the Bittern, Clapham, Pict, Saxon, Guillemot Area subsea facilities.
Serica said a “potential dry gas seal failure was identified in the ‘A’ gas compressor during operations on 26 October. This did not result in a leak of hydrocarbons. The FPSO operator, Dana Petroleum, is working to identify and execute the necessary repair”.
In October, Serica has said production guidance towards the bottom of the 41,000 to 46,000 boepd range was dependent on sustained production levels of around 50,000 boepd in Q4.
It added: “Given the outage of production from Triton, Serica’s production for 2024 is now expected to be slightly below this previous guidance.”
It also said that that actions were being taken to “reduce the operational vulnerability of the Triton FPSO” by bringing the second compressor into service.”
However, this “corrective” work is now expected to be delayed to the first quarter of 2025.
Production from Serica’s other assets is currently in line with expectations, with cash flow aided by the recent level of gas prices. The average month to date market gas price is 97.9 pence per therm, the strongest so far in 2024.
Serica will issue a trading and operations update in mid-November, by which time production on the Triton FPSO is expected to have resumed.
The addition of production from the GE-05 well on the Gannet field (SQZ: 100%) is expected shortly after the resumption of production.
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