The head of Serica Energy has downplayed the chances of success at its North Eigg exploration well due to be spudded later this summer, but maintains the prospect is a good one.
Serica Energy enjoyed an “outstanding year” in 2021 as gross profits surged to £386.8 million, reversing £2.9m losses the prior year, amid a huge bump to commodity prices.
Serica Energy (LON: SQZ) has said production at its Rhum field is not expected to restart for “at least two weeks” after a fault was identified with a subsea module.
“A really opportune moment” beckons for Serica Energy, according to chief executive Mitch Flegg, with gas prices strong, new production online and, since the turn of the year, reaching a major milestone for its North Sea business.
“More energy and less emissions” is how TotalEnergies’ North Sea boss summarises the company’s strategy for the coming years. And that, broadly speaking, is reflected across the plans of others too.
Serica Energy’s chief executive says the decision not to outlaw new North Sea exploration licences was “very important” in helping the industry “step back from the cliff edge”.
Serica Energy has confirmed preparations are underway to drill the North Eigg gas prospect after strengthening its “financial and operational foundations” in 2020.
Serica Energy has started work to boost production at its Rhum field, while the 13million barrel Columbus project has been delayed to the second half of 2021.
Serica Energy chief executive Mitch Flegg has said the North Sea oil and gas firm is on the hunt for acquisitions as majors look to “rationalise” their portfolios.
Cutting costs has added years to the life of Serica Energy’s Bruce platform, but other operators may need to "hasten" the end of some North Sea assets according to CEO Mitch Flegg.
Serica Energy has hailed “exceptional” results after nearly tripling its pre-tax profits in its first full year of operatorship for its Bruce, Keith and Rhum (BKR) assets in the North Sea.