Dong Energy: Hejre platform running late
- Business & Finance
Denmark’s DONG Energy has revealed today that production from its $2.2 billion Hejre development in the Danish North Sea will begin later that originally expected.
In its first half 2014 report, the Danish energy giant said that the work on the upper part of the Hejre field platform is challenged by delays at the company’s supplier consortium.
Due to this delay, the production from the Hejre field is not expected to start until 2017. According to the Final Investment Decision made in 2012,first production from the field was expected in late 2015.
“The supporting foundation of the Hejre platform has been installed on the seabed of the North Sea, and the drilling of the first production well has started. Much work is also going into establishing the infrastructure in the form of oil and gas pipelines and extending the oil terminal in Fredericia. However, the work on the upper part of the platform is challenged by delays at our supplier consortium. Production is therefore not expected to start until 2017,” the company explained in its report.
Hejre field development is a joint venture between DONG Energy and Bayerngas. DONG Energy is the operator and has a 60 per cent stake in the field and Bayerngas owns 40 per cent.
The company did not name the contractors in question.
Hejre Field is DONG Energy’s first High Pressure – High Temperature (HPHT) expansion. It is located in the central part of the North Sea near the Danish/Norwegian border. The development of the Hejre field comprises installation of a new production platform, including accommodation, wellhead and processing modules, five new production wells and separate pipelines for the oil and gas.
Hejre jacket was delivered in May 2014 and was built by Heerema for Technip as a part of the platform.
The development of the Hejre field will be the largest oil and gas project in the Danish sector of the North Sea for many years.
The pipelines will connect the Hejre field to the existing North Sea infrastructure and ensures safe transport of the produced oil and gas to onshore treatment facilities.
Net profit soars
As for the financial results, DONG Energy’s EBITDA was DKK 9.8 billion in H1 2014 compared with DKK 7.8 billion in H1 2013.
Net profit was DKK 1.4 billion, up DKK 1.0 billion on H1 2013, primarily driven by the higher EBITDA and impairment losses recognised in H1 2013. Cash flows from operating activities increased to DKK 6.6 billion from DKK 4.6 billion in H1 2013, mainly driven by the improved operating profit and fewer funds tied up in working capital. Gross investments totalled DKK 6.8 billion, mainly related to offshore wind activities and oil and gas fields.