Dong Energy has announced that the company has entered into a settlement agreement with the supplier consortium consisting of Technip France and Daewoo Shipbuilding and Marine Engineering (DSME) regarding a dispute related to an EPC contract for the Hejre platform.
At the end of March 2016, Dong Energy and Bayerngas said they no longer had confidence in the supplier consortium’s ability to deliver the Hejre platform and held the consortium in material breach of its contractual obligation, terminating the EPC contract. Subsequently, disputes around the termination of contract arose.
According to the settlement 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.
“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,” said David Cook, executive vice president of Dong Energy.