Serica Energy warns of production delays in North Sea

Serica Energy warned investors on Thursday that it had taken longer than expected to restart production at its Erskine operations in the UK Central North Sea due to the formation of gas hydrates in the Lomond production line.

The AIM-listed energy outfit said the ice-like crystals of water and gas had formed in the Lomond production line, upstream of a new 26km section completed in late September.

Serica stated standard methods were being used by Lomond's operator to dissolve the hydrates, using methanol and slowly depressurising the line, dissipating the hydrates in the process.

The group said the process was not expected to result in "a significant delay or in any long-term impact".

As of 0915 BST, Serica shares had slipped 2.30% to 106p.