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Shares in IOG PLC fell on Monday as the company reported another challenge for its Saturn Banks site.
The North Sea-focused gas and infrastructure operator said production has been temporarily halted at the site, after a fault at the terminal's condensate stabilisation unit was identified.
Shares in IOG fell 8.8% to 23.99 pence each in London on Monday morning.
Over the past month, there was considerable fluctuation in the Blythe and Elgood hydrocarbon liquids flowing into the Saturn Banks Reception Facilities slugcatcher, IOG explained. This is adjacent to the Perenco Bacton terminal, and all liquids streams that come into the terminal are processed using the CSU.
The operator of SBRF, Perenco UK Ltd, identified a drainage system deficiency in the CSU's two recycle compressors, following the increased liquid rates from Saturn Banks.
‘[Perenco] has concluded that this must be addressed before any further Saturn Banks liquids can be processed and has limited the SBRF slugcatcher to a 15% maximum liquid level. Consequently, after progressive reduction in flow rates to manage these constraints, [Perenco] has now enforced a full shut-in of Blythe and Elgood production to prevent further liquids entering the slugcatcher,’ IOG said.
Perenco is developing a modification which should resolve the issue, IOG said, and limited resumption of production is likely to start within a week, following a safety review scheduled for Monday.
The reduced gas production rate is expected at around 30 million standard cubic feet per day, and then to normalise in the coming weeks. Average daily production at Saturn Banks in the 30 days to May 20 was 41 million standard cubic feet.
‘This is a very frustrating interruption to our efforts to maintain stable, consistent early gas flows, however, maintaining the highest safety standards must always be the first priority. We are in close dialogue with Perenco at both management and technical levels to ensure the modification to their plant is rapidly expedited,’ said Chief Executive Officer Andrew Hockey.
The news follows a mechanical problem at Saturn Bank's Blythe topsides in late March, which had temporarily shut down production at the well.
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