Citing challenges and a lack of confidence in a supplier consortium’s ability to deliver, DONG Energy said it has given notice to terminate the EPC contract for the Hejre platform.
The platform is for the Hejre development in the Danish North Sea.
In a news release March 29, DONG said the supplier consortium consisting of Technip France and Daewoo Shipbuilding & Marine Engineering has not been able to meet its contractual commitments under the contract.
“This has, among other things, resulted in significant delays in the completion of the Hejre project,” DONG said in the news release.
The company and its partner Bayerngas Norge (Bayerngas) hold the consortium in material breach of its contractual obligations, the release said. The decision means the platform will not be completed, and the Hejre project in its current form will be stopped.
First oil in 2017 is no longer likely, DONG said in the release.
DONG and Bayerngas are working with its suppliers and Danish authorities to determine the best way forward for the project.
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