Independent oil and gas explorer Ithaca Energy saw its share price plummet 11% on Friday after its development partner said delay in delivering a production vessel would hit its key North Sea field.
Petrofac admitted the vessel now not be ready for sail-away from the Remontowa yard in Poland until spring 2015, which meant first hydrocarbons from the GSA could not be produced until mid-2015.
The company said the late delivery of its FPF1 floating production vessel would cost it between £3million to £5.9million although this would “not materially” impact its funding position.
Ithaca had initially warned in January that the delays in the arrival of its FPF1 rig would put its target for first oil from the GSA at the end of 2014.
The Aberdeen and Calgary-based company secured the firm access to the GSA, which it is estiomated to be a 30,000 barrel a day field, after it acquired Valiant Petroleum in a £203million in March of last year.
Les Thomas, Chief Executive of Ithaca, said:
“While good progress has been made with drilling of the third Stella development well and the subsea infrastructure installation works, the delay in the FPF1 sail-away schedule and consequently the impact on the timing of Stella first oil is clearly disappointing.
“We are working with Petrofac to expedite completion of the vessel modification and commissioning works and deliver start-up of the GSA hub as quickly as possible.”
The company’s market value dropped £54.4million to 135p.