Production restarted at the troubled UK North Sea Huntington oil field Friday after a nearly two month long suspension.
Norway-based Norwegian Energy Company (Noreco) has been granted “temporary approval” to start production again at reduced rates.
Production stopped in October and was initially set to restart in November.
However, an incident during the restarting of the field’s CATS riser platform delayed production for several weeks.
Current daily production from Huntington will not exceed 1,500 boepd net to Noreco.
The CATS operator has not given a firm date for restarting normal operation of the CATS Systems.
Noreco expects normal operations to be delayed at least until the end of January.
“It is difficult at this stage to guide on the exact cash flow implications for Noreco. It should be expected that the reduced production in the beginning of 2015 will be partly compensated by flush production when the field is back to normal,” Noreco said.
The field’s 2015 production plans indicate a significant drop in output compared to previous estimates.
Norway-based Noreco holds a 20 percent stake in the field.
Germany-based E.ON holds a 25 percent operating stake, UK-based Premier Oil holds a 40 percent stake and UK-based Iona Energy holds a 15 percent stake in the field.
Huntington is located in block 22/14b in the UK North Sea about 155 miles east of Aberdeen, Scotland.
First oil from the field was produced in April 2013.
Noreco’s financial woes have been compounded by the Huntington delays.
The company requested a deferral for bond interest payments earlier this month and said it can no longer meet the terms of previously requested waivers for $82.6 million in bond payments and a $12.46 million bond interest payment.