Serica Energy Set for 2025 Production Increase
January 21, 2025
U.K. North Sea-focused oil and gas company Serica Energy expects a 15.6% increase in 2025 production, helped by improved reliability of its assets, it said on Tuesday.
Serica has expanded production through acquisitions and investments in the last few years.
However, the company struggled with an outage at its Triton floating production storage and offloading (FPSO) vessel in the North Sea in 2024, which hit output.
Following the resumption of production into the Triton FPSO, output has been ramping up, Serica said in a statement.
"The five-well drilling campaign at Triton is now half-way through and delivering excellent results," CEO Chris Cox said.
"We expect substantial cash generation in 2025 to allow us to continue delivering material direct returns to our shareholders, while simultaneously continuing investment in our portfolio to unlock further value."
Cox reiterated the company continues to explore a range of mergers and acquisitions as part of efforts to drive growth and diversify.
Peel Hunt analysts said in a note that with new production wells underpinning the outlook for 2025, Serica was well placed to deliver year-over-year growth and shareholder distributions.
The company expects 2025 production to be 40,000 barrels of oil equivalent per day (boepd), up from 34,600 boepd in 2024.
Serica added that production would be weighted to the first half of the year, with maintenance programmes at the Bruce Hub and Triton FPSO expected to take production offline in the third quarter for 12 and 45 days, respectively.
(Reporting by Arunima Kumar in Bengaluru. Editing by Rashmi Aich and Mark Potter)
