Shares in oil operator Ithaca Energy slumped by almost 10% in morning trading after it revealed a new delay to its Greater Stella field development.
As recently as last week, the company was predicting first oil from the field by the end of November.
However, a newly discovered technical issue with the floating production platform means that oil output won’t now begin until early in the New Year.
The north east based group said routine inspections of the platform had flagged a problem with electrical junction boxes on a number of the vessel’s processing units.
It said a repair programme was already underway but the field would not go live until the work was completed and fully tested.
Ithaca told investors that all other preparations for the field switch-on are “on plan”, but the delay meant it would be early January before Stella’s taps are turned on.
The floating platform spent months in Poland’s Remontowa shipyard being heavily modified for its new task as the central production hub for the Greater Stella field.
Changes to the unit – which will be home to up to 70 personnel – include additional buoyancy and marine systems enhancement and the installation of entirely new topside oil and gas processing facilities.
The coming on-stream of Greater Stella will more than double Ithaca’s output to more than 20,000 barrels per day at a stroke.
Les Thomas, chief executive officer of London and Toronto-listed Ithaca, admitted his personal frustration at the latest delay to the project.
“The safety and integrity of the facility is paramount and we must ensure that everything is done meticulously in advance of the introduction of hydrocarbons into the facility,”he said.
“Although any delay to start-up at this stage is frustrating, the value of a thorough inspection programme has been proven and we look forward to completion of this work and the imminent start-up of production.”