Serica Energy faces production delays after Storm Éowyn

Serica Energy, a company that operates in the North Sea oil and gas sector, announced on Wednesday that it is facing further production delays. These delays are linked to the damage caused by Storm Éowyn, which hit in January. The London-listed firm revealed that repairs to its Triton floating production storage and offloading unit would not be finished before May. This is a setback from its earlier expectation to resume production by mid-March. Serica's CEO, Chris Cox, expressed frustration over the ongoing issues with the Triton unit, stating that the current situation is unacceptable for both the company and its shareholders. As a result of this news, Serica's shares dropped by 7.5 percent to 128.11 pence. The company has seen its stock value fall by over 30 percent in the past year and remains significantly below its August 2022 peak. Previously, Serica had anticipated reaching an oil production target of 40,000 barrels a day in 2025 but has had to reassess that goal. Cox emphasized that while drilling results around Triton have been positive, they need to translate into consistent production and cash flow. The company is working with Dana Petroleum, the operator managing the Triton unit, to improve performance and achieve more reliable production going forward.