(Alliance News) - North Sea oil & gas producer Serica Energy PLC on Thursday said production at the Bruce, Keith and Rhum fields has been halted following the discovery that an unused seawater return caisson has deteriorated.
Serica operates the Bruce, Keith, and Rhum fields in the UK North Sea, holding 98% of Bruce, all of Keith, and 50% of Rhum.
The company said that the caisson which was taken out of service in 2009 had parted below the water line, adding that production at the Bruce, Keith and Rhum fields has been stopped for two months while engineering work to ensure that the caisson is properly secured takes place.
Serica said financial impact resulting from operations stopping will be alleviated by the net cash flow sharing arrangements entered into by the company with the sellers of interests in the fields in 2018. The assets were bought off oil major BP PLC and mining giant BHP Group PLC.
The company said its other activities including its share of production from the Erskine field, are unaffected.
On January 14, Serica said its Bruce, Keith and Rhum fields, together with Erskine also in the North Sea, delivered 30,000 barrels of oil equivalent per day in 2019.
The stock closed 7.7% down at 120.00 pence each on Thursday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Serica Energy (SQZ)