DONG Energy invests in its Danish expansion
- Business & Finance
The positive development within the offshore industry has made it necessary for DONG Energy to extend the company’s office and storage facilities in the Port of Esbjerg. Therefore, DONG Energy has entered into an agreement with Blue Water Shipping to expand the two companies’ existing lease agreement.
Blue Water Shipping will invest around $ 10 million (DKK 55 million) in the renovation and rebuilding to meet DONG Energy’s requirements for additional office facilities, storage buildings, parking lots and surrounding areas. The existing office building will be expanded by 700 square metres and a nearby storage building will be transformed to a two-storey office with direct access to the existing office. DONG Energy will then have 5,500 square metres office while the storage facilities will be expanded to 5,000 square metres and the surrounding areas will be 22,000 square metres.
“With the construction in the Hejre Field, we are in the process of the largest investment in the Danish sector of the North Sea for the past 25-30 years. An investment which will create significant activity and employment in and around Esbjerg, which is our base from which we will handle shipments to the platform. We have therefore evaluated that we need modern work facilities, and we are pleased with the agreement we have made with Blue Water Shipping, which makes it possible for us to give our employees and partners good work facilities,” says Dann Lockdahl, DONG Energy Offshore Base Manager.
Blue Water is one of the large players in the Port of Esbjerg, and the company’s activities include rental of buildings and areas to a number of different companies.
“We wish to support the development in the Port of Esbjerg and we are pleased with the positive development that takes place in these years. We are pleased to expand our current agreement with DONG Energy who has been a good business partner for many years. We are satisfied that we have found an optimal solution together, ensuring that DONG Energy can continue its development which also benefits the whole area,” says Allan Junge, Financial Director of Blue Water Shipping.
Junge points out that it has been hard work to find a good and long-term solution, which exploits the existing buildings and areas in the best possible way. The agreement means that DONG Energy will take over the buildings and areas which ETS / Esbjerg Tubular Service rents from Blue Water today. As part of the integrated cooperation, Blue Water will build new facilities for Esbjerg Tubular Services in Esbjerg South Port.
First phase of the large construction project has already begun and the last phase will be completed in the autumn of 2015.
Press Release, July 14, 2014