Serica Energy PLC (AIM:SQZ) shares dropped in Tuesday's early deals after it announced the suspension of production at the Triton floating oil storage vessel, also known as an FPSO.
The company revealed that maintenance and repair work in the wake of Storm Éowyn, around three weeks ago, found further issues that need to be resolved.
It catalogued the problems detected at the Dana Petroleum operated field, and, told investors that production is expected to be offline until mid-to-late March.
"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,” Serica chief executive Chris Cox said in a statement.
“Safety is of course always the number one priority, and we fully support the operator's actions in ensuring that this supersedes other considerations.”
In London, Serica shares were down 17p or 11.7% changing hands at 127.2p
Triton storm damage
- Seaspray during the storm triggered the platform’s fire and gas detection system, causing an automatic shutdown.
- Following a restart on 28 January, minor damage to cargo tank was discovered
- Now, Dana’s repair team has found an integrity issue with a coupling in the inert gas line.
Significant value seen at Triton
CEO Chris Cox, in this morning’s statement, highlighted: “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."