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.
FTSE AIM All-Share
729.38
16:54 14/11/24
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Oil & Gas Producers
7,938.55
16:38 14/11/24
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69.09
Serica Energy
125.00p
16:40 14/11/24
1.96%
2.40p
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.