Image courtesy of Dong Energy.

Denmark-based Dong Energy said Wednesday that two of its oil and gas projects, the Hejre field and the Laggan-Tormore field, will be delayed.

Dong said work on the upper part of the Hejre field platform has slowed down because of delays from its suppliers.

Engineering, procurement and fabrication of the platform is being handled by a joint venture consisting of France’s Technip and South Korea’s Daewoo Shipbuilding & Marine Engineering.

Production was initially supposed to begin in 2016 but has been pushed back until the start of 2017.

The Hejre field is in the North Sea and contains two thirds oil and one third gas. Total reserves are estimated at 170 million barrels of oil equivalent.

Dong operates and holds a 60 percent stake in the Hejre field. Norway-based Bayerngas holds a 40 percent stake.

The development costs are expected to be about $2.12 billion (DKK 12 billion).

Production from the reservoir is projected to total about 529 million cubic feet of oil and about 353 million cubic feet of gas during the term of the project.

The supporting foundation of the Hejre platform has already been installed on the seabed and drilling started for the first production well.

Dong also expects delays in the construction of the gas treatment plant in the Shetland Islands tied to production at the deepwater Laggan-Tormore gas field.

The field is operated by France’s Total.

Production capacity at the field will be 90,000 barrels of oil equivalent per day.

Total is the operator of the field and holds an 80 percent stake. Dong holds a 20 percent stake.

Production at the field was supposed to begin in 2014 but has been pushed back to 2015.

Details about the cause of the delay were not disclosed.

Dong said it will revise its long term exploration and production targets because of the delays as well as changes in gas price forecasts and hydrocarbon tax framework.


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