Serica Energy PLC (AIM:SQZ) has reported a temporary production halt on the Triton Floating Production Storage and Offloading (FPSO) facility due to a potential gas seal failure.
The issue, which was identified on October 26, did not result in any hydrocarbon leak and the facility's operator, Dana Petroleum, is actively working to diagnose and execute the required repairs, Serica told investors.
Serica had forecasted annual production within a range of 41,000 to 46,000 barrels of oil equivalent per day (boepd), with expectations to reach around 50,000 boepd in the fourth quarter.
But, with the Triton FPSO’s recent production interruption, the company's 2024 output is now projected to fall slightly below this guidance.
Production across Serica’s other assets continues to be in line with company forecasts, while cash flow has been bolstered by favourable gas prices, averaging 97.9 pence per therm in October.
Serica anticipates that production on the Triton FPSO will resume before mid-November, with additional output from the GE-05 well on the Gannet field expected soon after.
In London, Serica shares were down 1.6% to 125.25p in Tuesday’s early deals.