Restart hold-up ratchets up UK oil & gas firm’s ‘frustrations’ with North Sea FPSO’s performance

UK-based upstream oil and gas player Serica Energy has disclosed a delay in resuming production from its assets in the North Sea, as more time is needed to fix the issue hampering a floating production, storage, and offloading (FPSO) vessel’s performance on the UK Continental Shelf (UKCS).

The firm’s production in the Triton cluster, which is achieved via the Dana Petroleum-operated FPSO Triton, ground to a halt because of issues that popped up in the aftermath of Storm Éowyn. During the storm, sea spray triggered the fire and gas detection system, causing an automatic production shutdown on January 24, 2025.

After determining the extent of minor damage the storm caused to one of the cargo tanks, it was concluded that the vessel needed to be repaired. Serica anticipated critical repairs to be completed in time for the production to resume mid-to-late March 2025.

However, the timeline required to deliver the scope of repair work has now changed; thus, the production from the FPSO Triton is not expected to recommence before May 2025. Given the ongoing maintenance issues and performance of the FPSO over the last 12 months, Serica claims to be discussing with Dana all options to secure “a lasting improvement” in the FPSO’s operating performance.

While Dana has operated the FPSO Triton since 2012, the list of all joint venture partners entails not only Dana Petroleum (E&P) (52%), but also Serica Energy Mistral (46%), and Waldorf Production UK/Waldorf Petroleum Resources (2%). The oil is exported via a shuttle tanker and the gas via the Fulmar gas line to St. Fergus.

The FPSO, located in Block 21/30, approximately 120 miles (193.12 kilometers) east of Aberdeen, produces oil and gas from the Bittern, Clapham, Pict, Saxon, and Guillemot area, with fields tied back to the vessel via subsea facilities comprising a series of pipelines and manifolds.

Commenting on the setback in production restart, Chris Cox, Serica’s CEO, highlighted: “Our frustrations with the ongoing performance of the Triton FPSO have been well documented – it is not good enough for Serica, and it is not good enough for our shareholders.

“Our drilling results around Triton have been tremendous, and these need to be converted into sustained production and cashflow. We are working closely with Dana to help support them with the current work, and to drive the change required to deliver a more predictable production performance going forward.”

The British independent oil and gas exploration and production player is perceived to be responsible for about 5% of the natural gas produced in the UK, with producing assets focused around two main hubs: the Bruce, Keith, and Rhum (BKR) fields in the UK Northern North Sea, which it operates, and a mix of operated and non-operated fields tied back to the FPSO Triton.

The Triton hub encapsulates eight producing oil fields: Evelyn, Bittern, Guillemot West and Guillemot Northwest, Gannet E, Clapham, Pict, and Saxon, which were developed via the FPSO Triton in the UK Central North Sea.

In addition, Serica has operated interests in the producing Columbus field in the UK Central North Sea and Orlando in the UK Northern North Sea, alongside a non-operated interest in the producing Erskine field in the UK Central North Sea.

The ongoing merger talks between Serica Energy and EnQuest over a potential business combination are a chance to expand the offshore footprint further if they bear fruit and end up establishing a bigger combined company with a total market capitalization of nearly $1 billion.