A partner on the Laggan-Tormore project, west of Shetland, in UK waters, has said first oil is likely to be delayed from the end of 2014 to 2015.
DONG Energy’s CEO Henrik Poulsen said Total, the operator of Laggan-Tormore, was reviewing delays in the construction of a gas treatment plant in the Shetland Islands, which would take natural gas from Laggan-Tormore.
“It is DONG Energy’s expectation that production start-up from the field will be postponed from end of 2014 to 2015,” he said.
The Laggan-Tormore development comprises two gas condensate fields, Laggan and Tormore, about 125km north-west of the Shetland Islands, in 120-600m water depth, which are being developed via a subsea tie-back to Sullom Voe on the main Shetland Island.
Laggan was discovered in 1986 and Tormore in 2007. Development approval was in 2010 and first production had been planned for 2014. Produced hydrocarbons will be transported to Sullom Voe via two 143km 18in import flowlines at a peak gas rate of 500MMscf/d. FMC Technologies is supplying the subsea production system and Subsea 7 the umbilicals, subsea tie-ins and commissioning all pipelines.
Total recently announced it was moving forward with the nearby Edradour discovery. It was put on hold in 2013, due to cost increases. A cost reduction plan had put it back on the table and it will now form part of what will be a “new strategic hub” west of Shetland, Total said in early July. Read more: New West of Shetland hub emerging.
Offshore Denmark, DONG Energy also said there were delays on the HPHT oil and gas Hejre development. The 6500-ton eight-legged steel jacket supporting foundation of the Danish North Sea Hejre platform has been installed on the seabed of the North Sea, and the drilling of the first production well has started, DONG added. Work was also going into establishing the infrastructure in the form of oil and gas pipelines and extending the oil terminal in Fredericia.
However, work on the 11,500-ton, 70-man topsides of the Heijre platform had been challenged by delays at the supplier consortium. The topsides and living quarters were due to be installed in Q2 2015, with first oil in Q4, with full commercial operation in 2016, according to a DONG Energy information sheet. Production is now not expected to start until 2017, said DONG.
In February 2012, Technip, in partnership with DSME, were awarded an engineering, procurement, fabrication, hook-up and commissioning contract for the wellhead and process platform and associated facilities on Hejre.
DONG, which also has offshore wind and power projects, said it is also waiting for regulatory approval of a new solution to permanently repair the Siri platform. Read more: Permanent repair close.
Poulsen added: “In E&P, the exploration results in recent years have not lived up to the Group's expectations, gas price forecasts and local hydrocarbon tax frameworks have changed, and ongoing field development projects have been delayed. These changes have led to a revision of the long-term targets for E&P.”
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