Serica Energy (AIM: SQZ) has suspended production from the Triton floating production storage and offloading (FPSO) vessel due to damage from Storm Eowyn.
According to the company, the storm on 24 January caused sea spray that triggered the fire and gas detection system, causing an automatic production shutdown.
Following an initially successful restart on 28 January, it was established that the storm had caused minor damage to one of the cargo tanks which required repair.
While preparing to conduct the necessary repairs, Triton operator Dana Petroleum identified an integrity issue with a coupling in the inert gas line required for purging the tanks prior to carrying out the repairs.
Triton has remained offline subsequently pending identification of the root cause of the issue and the best means of resolving it.
Serica said it is supporting Dana in this process including the secondment of its own representative into the operator’s team dealing with this issue.
Triton was hit by multiple outages in 2024, with compressor seal issues causing it to shutdown at the end of October last year.
These issues led to Serica dubbing its 2024 results as “disappointing” with output lower than expected. Now, the issues risk upsetting the group’s “promising” 2025.
Serica CEO Chris Cox stated: “Given that the Triton FPSO was recovering strongly from the operational issues of 2024, with material production from new wells, the impact of Storm Eowyn is deeply frustrating.
“Safety is of course always the number one priority, and we fully support the operator’s actions in ensuring that this supersedes other considerations.”
The company currently expects that the safety critical repairs will result in the recommencement of production in mid-to-late March.
The extent of annual maintenance work in the summer, currently scheduled for 40 days, is also under review. The group will also continue work in parallel on the second gas compressor which is on track to be available by the end of the first quarter.
Serica’s production for January 2025 averaged 37,000 boepd, with February averaging 27,000 boepd to date.
The company’s 2025 production guidance is under review, and will be restated or revised pending further clarity on the timeline and implications for the necessary Triton activities.
The Triton FPSO is located approximately 120 miles east of Aberdeen, and produces oil and gas from the Bittern, Clapham, Pict, Saxon, Guillemot Area subsea facilities.
The joint venture partners recently received the final draft of a comprehensive third-party engineering study, commissioned by the JV to consolidate prior work, to assess the scope and costs associated with extending the life of the Triton FPSO to a range of Cessation of Production dates up to 2040.
The report has confirmed that, subject to the continuation of the programme of maintenance and upgrades, the FPSO has the potential to continue producing well into the next decade.
Cox added: “Recent drilling results illustrate the significant value of proven hydrocarbons in the Triton area. We will continue working with the operator and discussing with them at the highest level all options to secure a lasting improvement in the operating performance of the FPSO.”
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