Serica Energy Faces Production Slowdown at Triton FPSO; 2025 Guidance Trimmed

Serica Energy (LON:SQZ) has announced a temporary reduction in production from the Triton Floating Production Storage and Offloading (FPSO) vessel, leading to a revised production guidance for 2025.

The development follows a period of strong performance where portfolio production reached over 55,000 barrels of oil equivalent per day (boepd) in mid-August.

Following the news, SQZ shares have fallen more than 13%, currently trading around the 154p mark.

The operator of the Triton FPSO, Dana Petroleum, cited ongoing maintenance and upcoming subsea intervention work at the Bittern field as the reasons for the adjustment.

Consequently, Serica's production forecast for 2025 has been lowered to a range of 29,000 to 32,000 boepd, down from the previous estimate of 33,000 to 35,000 boepd.

Currently, production is said to be hampered by a vibration issue within the compression trains on the Triton FPSO.

According to the firm, repairs are underway, and normal operations are anticipated to resume around the end of September.

Efforts are focused on restoring two compressor operations, which are crucial for maximizing production at the FPSO, including output from the EV-02 well on the Evelyn field. Serica's net production from the Triton FPSO had surpassed 25,000 boepd in August, and the operation of two compressors is expected to increase this figure.

Further impacting production is the scheduled subsea intervention work on the Bittern field, slated for November 2025. This three-week project addresses an emerging vulnerability in the subsea infrastructure. Although initially planned for 2026, Dana Petroleum has accelerated the timeline.

The work will not only affect the Bittern field but also halt production from the Evelyn and Gannet fields, resulting in a temporary reduction of over 20,000 boepd net to Serica.

Driver Breakdown:

• Triton FPSO Maintenance: The immediate production slowdown stems from the vibration issue within the compression trains, requiring prompt repairs.
• Bittern Field Intervention: The accelerated subsea work in November 2025 will cause a more significant, albeit temporary, production decline.
• Revised Guidance: The combined impact of these events has necessitated a downward revision of Serica's 2025 production guidance.