DONG Energy Terminates Hejre Project EPC Contract
DONG Energy announced Tuesday that it has decided to terminate the EPC contract for the Hejre project with immediate effect, after the company claimed the supplier consortium failed to meet its contractual commitments.
The energy company revealed that it no longer has “confidence” in the supplier consortium’s ability to deliver a planned platform and stated that it holds the consortium, consisting of Technip France and Daewoo Shipbuilding & Marine Engineering, “in material breach of its contractual obligations”. As a result of the decision, the platform will not be completed and the Hejre project in its current form will be stopped.
DONG Energy will now assess alternative methods for the development of the Hejre field. As such, no first oil production date for the Hejre field can be provided at present, according to a company statement.
DONG Energy Executive Vice President David B. Cook said in a company statement:
“DONG Energy and Bayerngas have today decided to terminate the contract for the Hejre platform due to the supplier consortium’s material breach in meeting its contractual obligations under the EPC contract for the design and construction of the Hejre platform. We’ll now take a step back to jointly evaluate the best way forward for the Hejre field.”
In its annual report for 2015 released on February 4, DONG Energy announced that the Hejre project was in a challenging situation and stated that first oil in 2017 is no longer the likely scenario.
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