DONG, Bayerngas cancel Hejre EPC contract

DONG Energy and Bayerngas Norge have cancelled the engineering, procurement, and construction contract for development of Hejre oil and gas field offshore Denmark (OGJ Online, Apr. 2, 2013).

DONG last month had warned that production was unlikely to start in 2017 as scheduled.

In a statement, DONG said a consortium of Technip and Daewoo Shipbuilding & Marine Engineering “has not been able to meet its contractual commitments under the EPC contract on the Hejre platform.”

DONG said it and Bayerngas will “jointly evaluate the best way forward for the Hejre field.”

The high-pressure, high-temperature field is in the northern part of the Danish Central Graben. It was to have been developed with a manned wellhead and processing platform set in 70 m of water able to produce as much as 76 MMcfd of gas and 35,000 b/d of oil from five wells (OGJ Online, Feb. 27, 2012).

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