Technip disagrees with Dong Energy on Hejre platform cancellation

French oilfield specialist Technip will not accept a decision by its Danish client Dong Energy to scrap the order for the construction of an offshore platform.

Technip, in cooperation with the South Korean shipbuilder Daewoo Shipbuilding Marine and Engineering, in February 2012 won the order to build the platform for the Dong Energy-operated Hejre field in the Danish sector of the North Sea. The project was at the time dubbed “the largest oil and gas project in the Danish sector of the North Sea for many years.”

In August 2014, Dong Energy said that that production from its $2.2 billion Hejre development would begin later that originally expected, citing delays with the construction of the topside.

Dong Energy then said that due to the delay, the production from the field would not start until 2017. According to the Final Investment Decision made in 2012,first production from the field was expected in late 2015.

However, the 2017 deadline will probably not be achieved either, as Dong Energy in March said it would cancel the platform order and stop the development for the time being, blaming Technip and Daewoo for delays, and holding the consortium in material breach of its contractual obligations.

In its quarterly update on Thursday, April 28, Technip acknowledged its involvement on the Hejre platform ended at the request of Dong Energy.

According to Technip, Dong Energy said it would not take possession of the elements of the platform under construction and that the overall project in its current form would be stopped.

“Given that the project was well advanced, this project represented less than 1% of our backlog. The consortium disagrees with many aspects of the Dong statement and will defend its interests as arbitration proceedings on claims proceed,” Technip said on Thursday, presenting its first quarter results.

Offshore Energy Today Staff

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