North Sea Hejre partners settle construction dispute

DONG Energy and Bayerngas have reached a settlement with Technip France and Daewoo Shipbuilding and Marine Engineering.

Offshore staff

COPENHAGEN, Denmark – DONG Energy and Bayerngas have reached a settlement with Technip France and Daewoo Shipbuilding and Marine Engineering (DSME).

This concerns last year’s termination of the consortium’s engineering, procurement, and construction contract for theHejre platform in the Danish North Sea, with DONG citing unsatisfactory standards of work.

A dispute subsequently arose around, but all sides have now entered into a settlement agreement regarding the dispute, including the arbitral claims.

Under this, the supplier consortium holds full responsibility for disposal of the Hejre platform, which DSME will dismantle. DONG Energy will have no further responsibilities or liabilities with regard to the platform.

David Cook, executive vp at DONG Energy, said: “This is a good outcome for our business…We can now put this issue behind us and continue our focus on running a safe, successful, and sustainable oil and gas business.”

DONG Energy has been controlling the termination process with the supplier consortium on behalf of the Hejre license partners and assumed all potential liabilities, rights, and benefits arising out of the contract and the termination process.

The settlement does not affect the ongoing assessment with Bayerngas on re-development alternatives for theHejre field.

05/05/2017

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