Damage caused by Hurricane Ida to third-party downstream service providers led to “prolonged” production disruptions for Talos Energy, the company announced Tuesday.
In an update on its third quarter operations, Talos said the Category 4 storm, which tore through the central Gulf of Mexico and the state of Louisiana in late August, caused significant issues.
“Key refiners, crude oil terminals and pipelines were not fully returned to operation for several weeks due to a mix of storm-related damage and a lack of power,” the company said. Much of Louisiana, including a number of major refineries, were left without power for weeks as a result of Ida.
Talos said its assets did not experience significant damage during the storm and most have returned to normal operations, producing an average of approximately 66,500 barrels of oil equivalent per day during the last week of September.
Approximately 4000 boepd of production remains offline as a result of repairs to pipelines and other downstream facilities.
“Talos expects the remaining impacted assets to return to production over the coming weeks and months as the third-party repairs are finalised,” the company said.
For the quarter, Talos said it averaged daily production between 56,000 boepd and 56,500 boepd, which included “several” weeks of shut-in production from Ida.
The company said between 10,000 boepd and 11,000 boepd of average production were lost as a result of hurricane-related damage, but the company said it still expects to be able to meet the “lower end” of its annual production guidance.
For the third quarter, Talos said it realised prices of approximately $68 per barrel of oil, $30 per barrel of natural gas liquids and $4.50 per million cubic feet of natural gas. The increase in oil and gas prices did sting the company, however, as it reported hedge losses of approximately $72 million during the quarter.