Serica confirms suspension at Triton FPSO after Storm Eowyn
By Josh White
Date: Tuesday 18 Feb 2025
(Sharecast News) - Serica Energy announced on Tuesday that it has suspended production from the Triton FPSO following damage caused by Storm Éowyn, with operations now expected to resume in mid-to-late March.
The AIM-traded firm said the storm on 24 January triggered an automatic shutdown after sea spray activated the fire and gas detection system.
While production initially restarted on 28 January, minor damage to a cargo tank was later identified, requiring repairs.
Further complications arose when operator Dana Petroleum discovered an integrity issue with a coupling in the inert gas line, which was needed to purge the tanks before repair work could begin.
Serica said it was supporting Dana in resolving the issue, including seconding a representative to the response team.
The company was also reviewing its 2025 production guidance, pending more clarity on the timeline for Triton's repairs.
Production in January averaged 37,000 barrels of oil equivalent per day, while February to date had averaged 27,000 equivalent daily barrels, with strong output from the Bruce Hub benefitting from robust gas prices.
Meanwhile, work on a second gas compressor remained on schedule for completion by the end of the first quarter.
The board said the Triton joint venture had received the final draft of an independent engineering study assessing the potential to extend the FPSO's life to as late as 2040.
It said the report indicated that, with continued maintenance and upgrades, the facility could remain operational well into the next decade.
The scope and duration of this summer's scheduled 40-day maintenance shutdown were also under review.
"Given that the Triton FPSO was recovering strongly from the operational issues of 2024, with material production from new wells, the impact of Storm Éowyn is deeply frustrating," said chief executive officer Chris Cox.
"Safety is of course always the number one priority, and we fully support the operator's actions in ensuring that this supersedes other considerations."
Cox said recent drilling results illustrated 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."
At 0944 GMT, shares in Serica Energy were down 12.71% at 125.7p.
Reporting by Josh White for Sharecast.com.
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