Offshore Platform 'Siri' for Repair Despite Cost Increase

Press Release
Sunday, April 22, 2012

Dong Energy implements permanent repair to North Sea Platform 'Siri' despite increased costs

Dong Energy is implementing a permanent repair solution necessary to restore the integrity of the Danish North Sea platform Siri.

The background for the repair work is that DONG Energy during a routine inspection in August 2009 discovered cracks in the nose of the subsea oil tank of the Siri platform. No pollution happened but the production was shut down for five months as a safety measure and re-started January 2010 after a temporary solution had been installed.

Following the progress of the project, the repair cost estimate has been increased from the initial expected DKK 2 billion to DKK 3.5 billion of which DKK 0.6 billion was incurred in 2011. For the remaining part (DKK 2.9 billion), the distribution between 2012 and 2013 is dependent on the progress of the project which is still uncertain. Currently, the expectation is that two-thirds will be incurred in 2012 and the one-third in 2013.

Flemming Horn Nielsen, Vice President and responsible for DONG Energy’s Danish oil and gas activities, underlines that the chosen repair solution and continued operation of the Danish North Sea platform Siri is still a solid business case despite increased cost of the repair work:

“The Siri area still holds valuable reserves and offers further upside opportunities for new reserves in the wider area. The repair project has been necessary to maintain a high safety and environmental standard for the Siri platform, which will function as a host for a number of fields in the area for many years to come”, Flemming Horn Nielsen said.

The cost has changed mainly due to the fact that the required repair solution is not an “off-the-shelf” repair job, but a complex work involving new techniques in offshore settings. During the project progress changes to the detailed design and engineering has had a large impact on the fabrication and installation.

Production from the Siri field and the processing of oil from the Siri area (today from the fields Nini, Nini East, Stine and Cecilie) is expected to continue at normal levels during the repair. However due to increased safety measures more outage time in 2012 and 2013 could be expected.

 

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Schlumberger Announces Q1 Results

Schlumberger Limited (NYSE:SLB) today reported first-quarter 2014 revenue from continuing operations of $11.24 billion versus $11.91 billion in the fourth quarter of 2013, and $10.

Russia Ships First Oil From Offshore Arctic Platform

President Vladimir Putin hailed Russia's first shipment of Arctic offshore oil on Friday, saying the platform decried by environmentalists will help Moscow expand its global energy markets share.

Shipping Turns From Banks to Equity Markets for Cash

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

Offshore

Coast Guard tactical air squadron holds change of command ceremony

Capt. Kevin P. Gavin relieved Capt. Donna L. Cottrell as commanding officer of Coast Guard Helicopter Interdiction Tactical Squadron Jacksonville during a change of command ceremony at HITRON Friday.

Shell Commited To Russia Expansion Despite Sanctions

Royal Dutch Shell is committed to expansion in Russia, Chief Executive Ben van Beurden told Russian President Vladimir Putin at a meeting on Friday amid sanctions

Russia Ships First Oil From Offshore Arctic Platform

President Vladimir Putin hailed Russia's first shipment of Arctic offshore oil on Friday, saying the platform decried by environmentalists will help Moscow expand its global energy markets share.

Finance

India's Reliance Q4 Sales Rise

Indian energy company Reliance Industries Ltd posted nearly flat fourth-quarter profits, in line with estimates, as a slimmer margin in its oilrefining business offset higher revenue.

Schlumberger Announces Q1 Results

Schlumberger Limited (NYSE:SLB) today reported first-quarter 2014 revenue from continuing operations of $11.24 billion versus $11.91 billion in the fourth quarter of 2013, and $10.

New sanctions threats as Ukraine stalemate goes on

A day after an international deal in Geneva to defuse the East-West crisis in Ukraine, pro-Russian separatists vowed not to end their occupation of public buildings

Energy

India's Reliance Q4 Sales Rise

Indian energy company Reliance Industries Ltd posted nearly flat fourth-quarter profits, in line with estimates, as a slimmer margin in its oilrefining business offset higher revenue.

Schlumberger Announces Q1 Results

Schlumberger Limited (NYSE:SLB) today reported first-quarter 2014 revenue from continuing operations of $11.24 billion versus $11.91 billion in the fourth quarter of 2013, and $10.

New sanctions threats as Ukraine stalemate goes on

A day after an international deal in Geneva to defuse the East-West crisis in Ukraine, pro-Russian separatists vowed not to end their occupation of public buildings

Maritime Safety

Coast Guard tactical air squadron holds change of command ceremony

Capt. Kevin P. Gavin relieved Capt. Donna L. Cottrell as commanding officer of Coast Guard Helicopter Interdiction Tactical Squadron Jacksonville during a change of command ceremony at HITRON Friday.

Vice-Principal of South Korean School in ferry disaster commits suicide

The vice-principal of a South Korean high school who accompanied hundreds of pupils on a ferry that capsized has committed suicide, police said on Friday, as hopes

RS at SEA JAPAN 2014

Russian Maritime Register of Shipping (RS) was the only Russian company to take part in SEA JAPAN 2014 exhibition and conference – one of the major exhibitions of the maritime industry.

 
 
Maritime Security Naval Architecture Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1457 sec (7 req/sec)