Serica Energy UK cuts production forecast after another Triton failure

Serica Energy, a British company, lowered Wednesday its production forecast for the second consecutive month following a new disruption on the Triton production storage and offloading ship.

Serica said that production at the vessel operated by Dana Petroleum has temporarily been halted since September 30 because of a flare system problem. She added that operations are likely to resume soon, but with limited rates.

Serica has faced challenges with the vessel over the last year. Serica reduced its production forecast due to "vibration problems" last month. In October of last year, an issue with a single compressor hampered production.

In a press release, CEO Chris Cox stated that it was "incredibly frustrating" to report on an asset that is not being operated. He added that Dana would be stepping up discussions with the company about the operation of the vessel.

Serica now expects that fiscal 2025 production will be lower than the previously forecast range of between 29,000 and 32,000 barrels equivalents per day despite the vibration problems being resolved on the 23rd of September.

Analysts at Jefferies said that if Serica’s deal with Prax Upstream last week, the exclusive operator of the Lancaster oilfield located in the UK’s North Sea was positive, then the downgraded production was "a negative offset."

(source: Reuters)