Stock Market News
Serica Energy building new pipeline after Lomond suffers wax blockage
(WebFG News) - Oil and gas company Serica Energy announced on Tuesday that following the identification of a blockage in the Lomond to Everest pipeline it will construct a new pipeline at its Erskine oilfield project.
The decision to construct a new 26km bypassing pipeline follows news that pipeline operator Chrysaor Limited has been unable to clear the wax deposit blockage which was found during cleaning operations in January.
The pipeline is essential for the exporting of fluids from the Erskine field, which Serica has an 18% stake in.
Mitch Flegg, chief executive of Serica Energy, said: "While we are disappointed that efforts by the Lomond field operator to clear wax from the Lomond condensate export line have not been successful we are pleased that plans to achieve a permanent solution for this recurring problem are progressing well."
The approvals for the construction of a new pipeline is expected to be granted in July, with work following in August and production restarting in September.
The closure of the project in the meantime will afford Chrysaor and Serica time to work through a backlog of maintenance work.
"The operator is taking the opportunity to perform significant extra maintenance work during the planned 2018 Lomond shutdown. This should lead to improved performance later this year and in future years to the long-term benefit of the Erskine field. Although this is expected to extend the Erskine shut in to September, there was no certainty that the clearance work would have been successful but would have still incurred additional ongoing cost," said Flegg.
As of 0844 BST, Serica Energy's shares were down 3.49% at 83.00p.
The decision to construct a new 26km bypassing pipeline follows news that pipeline operator Chrysaor Limited has been unable to clear the wax deposit blockage which was found during cleaning operations in January.
The pipeline is essential for the exporting of fluids from the Erskine field, which Serica has an 18% stake in.
Mitch Flegg, chief executive of Serica Energy, said: "While we are disappointed that efforts by the Lomond field operator to clear wax from the Lomond condensate export line have not been successful we are pleased that plans to achieve a permanent solution for this recurring problem are progressing well."
The approvals for the construction of a new pipeline is expected to be granted in July, with work following in August and production restarting in September.
The closure of the project in the meantime will afford Chrysaor and Serica time to work through a backlog of maintenance work.
"The operator is taking the opportunity to perform significant extra maintenance work during the planned 2018 Lomond shutdown. This should lead to improved performance later this year and in future years to the long-term benefit of the Erskine field. Although this is expected to extend the Erskine shut in to September, there was no certainty that the clearance work would have been successful but would have still incurred additional ongoing cost," said Flegg.
As of 0844 BST, Serica Energy's shares were down 3.49% at 83.00p.
Related share prices |
---|
Serica Energy (SQZ) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price