COVID delays may increase cost of North Sea Tyra project

June 28, 2021
Norwegian Energy Co. has issued a progress report on the Tyra field redevelopment in the Danish North Sea.

Offshore staff

STAVANGER, Norway – Norwegian Energy Co. (Noreco) has issued a progress report on the Tyra field redevelopment in the Danish North Sea.

At Sembcorp Marine in Singapore, fabrication of the Tyra East wellhead and riser platform (WHRP) is nearing completion: the transportation vessel arrived at the yard on June 20.

The Tyra West WHRP is progressing at the same yard with sail away and installation scheduled for 2022.

Although the yard underwent a temporary shutdown last month due to COVID-19, the impact on the project was limited.

That is not the case at the McDermott yard in Batam, Indonesia, responsible for the processing module. Here a high frequency of COVID-19 cases in the area has led to enhanced precautionary measures being taken to minimize exposure and new cases.

Parts of the fabrication program have as a result progressed slower than expected, although contingency measures in the contract do allow for the module to sail away during 2022.

COVID-19 impacts have also slowed fabrication on the accommodation module at the Rosetti Marine yard in Ravenna, Italy. Alternative sail-away timing scenarios are being assessed, but there does not appear to be a risk to the first gas date of 2Q 2023. 

While the official budget for the project of DKK21 billion ($3.37 billion) has not been revised since the investment decision was taken in 2017, there have been upward pressures on costs due mainly to COVID-19.

The Danish Underground Consortium partnership, led by TotalEnergies, is yet to change the original figure. However, Noreco as a partner internally assumes DKK22 billion ($3.53 billion), based on information provided by TotalEnergies. 

06/28/2021

Courtesy Var Energi's "Interim Report Fourth quarter 2023" presentation
Courtesy Valeura Energy Inc. Corporate Overview (presentation), February 2024