Supply Chain Issues Push Back First Tyra Gas

Supply Chain Issues Push Back First Tyra Gas
TotalEnergies-operated Tyra Redevelopment Project in the Danish North Sea has experienced delays due to global supply chain difficulties.

Energy company Noreco has announced that the TotalEnergies-operated Tyra Redevelopment Project in the Danish North Sea experienced delays due to global supply chain difficulties.

Noreco said in a statement that the first gas date from the Tyra Redevelopment Project was revised by TotalEnergies and pushed back to winter 2023-2024.

According to the company, the revision was driven by global supply chain challenges that have impacted the extent to which fabrication work on the processing module (TEG) has been completed in the yard in Batam. While the sail-away of the TEG will be a positive milestone that marks the end of Tyra II’s onshore fabrication phase, it will depart with additional work required to be completed offshore to achieve first gas. The operator of the project also revised its plan for the ongoing hook-up and commissioning phase.

Seven out of eight modules are already installed offshore, and the TEG has been the only remaining module where onshore fabrication is still ongoing. With load-out of the processing module beginning this week, the module will leave McDermott’s yard in Batam in an incomplete state with approximately 580,000 hours of remaining work, where the operator expects approximately 165,000 hours are required to reach first gas.

The carry-over work is mainly caused by the overall performance at the yard where overhang from Covid-19 has challenged the quality and progress, and the operator’s efforts in mitigating actions have proved not to be sufficiently effective.

The sail away of the module remains on schedule and is expected in early September where the TEG will be transported directly to the Tyra field by heavy lift vessel GPO Emerald followed by a lift and installation by Heerema’s Sleipinir.

Offshore Hook-Up And Commissioning

Although TotalEnergies has focused on optimizing the ongoing offshore activities at the Tyra field, progress is below the original plan and will be further impacted by the carry-over scope of the arriving TEG. As such, offshore productivity assumptions have been revisited with several identified areas of potential improvements and learnings which should have an overall positive effect on the Offshore Hook-Up and Commissioning performance going forward.

Revised Start-Up Of Tyra II

TotalEnergies also revised the planning towards first gas according to the status of TEG at sail away. The operator has concluded that the schedule of the original planned work scope is no longer achievable and the probabilistic range of first gas dates for Tyra II is as follows – P10 in October 2023, P50 in December 2023, and P90 in March 2024.

The schedule change means the expenditure budget for Tyra II will rise. TotalEnergies have indicated that they expect a gross budget for first gas of around $3.3 billion and to project completion of around $3.5 billion. The increase in budget is mainly related to higher expected costs on the hook-up & commissioning and project management.

“Today’s news on a revised schedule for Tyra is disappointing, however, we are now entering the last stage of the Tyra Re-development with a good definition of the work scope remaining to achieve first gas. We now have a robust plan built on experience from the initial nine months of offshore hook-up and commissioning and we expect to add more than 500 offshore workers. The complexity of the operations at Tyra will increase and safe operations are our main priority.”

“The imminent sail-away of the TEG module from Batam is a significant milestone for Tyra II with the onshore fabrication process complete.  By Q4 2022, all eight modules will have been installed offshore and, importantly, remaining activity to first gas will be fully within the direct control of TotalEnergies.”

“In parallel with delivering Tyra, we are working to increase gas production from our producing assets in the DUC. We have seen positive gains from the Halfdan stimulation campaign and for the upcoming infill wells we are prioritizing gas-rich targets,” Marianne Eide, Noreco’s COO, said.

“Noreco fully recognizes the economic, strategic, and political importance of achieving Tyra first gas. Our focus will remain on ensuring that the revised project plan, as recently communicated to us by the operator, is secured. We are committed to making an active contribution as we seek to improve offshore HUC performance and expedite first gas from Tyra II.”

“Our underlying business with the producing Halfdan, Dan, and Gorm hubs continues to perform strongly and the extent to which this translates into the generation of meaningful profitability and cashflow was demonstrated in our Q2 2022 results. Our stable and robust capital structure continues to be set to take whatever actions are available to achieve the earliest start-up for Tyra II,” Euan Shirlaw, CEO of Noreco, added.

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