The platform will not be completed, and Hejre project in its current form will be stopped. It writes Dong Energy in a statement Tuesday.
The annual report for 2015, published February 4, 2016 announced Dong the company Hejre project in the Danish sector of the North Sea continues to be a challenging situation, and that first oil in 2017 is no longer a likely scenario.
Since it has Dong worked closely with partner Bayerngas Norway and suppliers to find the best way forward for the project.
A key challenge for this project has been the supplier consortium comprising Technip and Daewoo Shipbuilding & amp; Marine Engineering (DSME), have not been able to meet its contractual obligations under the EPC contract (engineering, procurement and construction), according to the company.
According to Dong, this has resulted in significant delays in implementation of Hejre project.
– Dong and Bayerngas no longer have confidence in leverandørkonsortiets ability to deliver platform and believes the consortium fails to meet his contractual obligations, the company said.
On the basis of this Dong Energy and Bayerngas Norway today given notice to terminate the EPC contract with supplier consortium with immediate effect. This means that the platform will not be completed and that Hejre project in its current form will be stopped.
– DONG Energy and Bayerngas has today decided to terminate the contract for Hejre platform due leverandørkonsortiets material breach of its contractual obligations under the EPC contract for design and construction of Hejre platform. We will now take a step back in order to jointly evaluate the best way forward for Hejre field, said David B. Cook, executive vice president of Dong Energy.
Dong and Bayerngas agree that Dong will control termination process the supplier consortium on behalf of Hejre project. The companies will now consider alternative ways for development of the field. According to Dong, they can therefore not give a date for first oil Hejre field.
Dong and Bayerngas will work closely with the Danish authorities in the process going forward, according to the company.
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