Following a dispute regarding the termination of the engineering, procurement and construction (EPC) contract for the Hejre platform, DONG Energy and the supplier consortium have entered into a settlement agreement, including the arbitral claims, related to the contract.
The supplier consortium consists of Technip France and Daewoo Shipbuilding and Marine Engineering (DSME).
According to the agreement, the supplier consortium holds full responsibility for the disposal of the Hejre platform, which will be dismantled by DSME.
DONG Energy will have no further responsibilities or liabilities with regard to the platform., the press release said.
David Cook , executive vice president in DONG Energy, said: “This is a good outcome for our business. I’m very satisfied that we’ve reached a solution on the disputes and arbitral claims with the supplier consortium. We can now put this issue behind us and continue our focus on running a safe, successful and sustainable oil and gas business.”
As per agreement with the Hejre licence partner, Bayerngas, DONG Energy has been controlling the termination process with the supplier consortium on behalf of the Hejre licence 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 the Hejre field, DONG Energy said.