Soco International Expects Fall In 2018 Oil Output On Compressor Fault

LONDON (Alliance News) - Soco International PLC on Wednesday said it expects to report a decline ...

Alliance News 9 January, 2019 | 8:31AM
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LONDON (Alliance News) - Soco International PLC on Wednesday said it expects to report a decline in its annual oil production from Vietnamese assets, hurt by storm Usagi and issues with gas compressors.

The oil & gas company said production in 2018 from the Te Giac Trang and Ca Ngu Vang fields in Vietnam net to the company's working interest averaged 7,274 barrels of oil equivalent per day. This is in line with the production guidance at the end of September of between 7,000 and 7,400 barrels of oil equivalent daily, but below 2017 net production average of 8,276 barrels of oil equivalent daily.

Soco holds a 25% stake in the Te Giac Trang field and 30.5% holding in Ca Ngu Vang field.

Significant cost savings of over USD40 million for the Te Giac Trang field were secured in 2018, through the extension of two key operational contracts, Soco said.

However, in late November 2018, production from the Te Giac Trang field was temporarily impacted due to tropical storm Usagi. As a result, Te Giac Trang production averaged 5,686 barrels of oil a day net to Soco, down from 6,724 barrels of oil equivalent daily in 2017 .

In addition, Soco said production from the field was impacted by performance issues with the field's gas compressors. The company said it has completed tests, which showed that the gas compressors were suffering unplanned outages and delivering lower gas lift.

The company said it has identified solutions to both reduce the current flaring to previous levels and to minimise future compressor outages.

Meanwhile, average production from Ca Ngu Vang was broadly flat year-on-year at 1,588 barrels of oil equivalent per day net to Soco.

Production guidance for 2019 is between 6,500 and 7,500 barrels of oil equivalent per day net. Soco said that the actual production at the higher end of this range will depend on several operational factors, including the timing of the drilling.

Soco shares were trading 0.5% lower on Wednesday at 75.60 pence a share.

The company will announce its full-year results on March 6.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
SOCO International PLC 63.57 GBX -1.90 -
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