On 31 August 2009, following a routine inspection revealing cracks in a subsea
structure connected to the oil storage tank underneath the Siri platform, DONG
Energy decided to stop production from the Siri field.
The structure carries the load of the caisson containing risers and conductors
to and from the subsea storage tank. The cracks developed due to failure of the
grouting material designed to fix the caisson. No discharge of oil or other
pollution has been detected as a result of the cracks.
As the licence operator, DONG Energy has now developed a temporary solution
designed to support the caisson to prevent any further damage. Such stabilising
will also ensure that any necessary inspections will be carried out in a safe
manner in order to establish a permanent solution. The temporary solution
involves a drilling rig being connected to the caisson, taking the load off the
caisson through the use of specially-designed lifting gear.
With the temporary solution production is expected to be resumed during
November 2009, depending on the uncertainty regarding weather conditions, the
processing time involved in connection with third-party verification of the
temporary solution and regulatory approvals, among other factors.
DONG Energy's share of production from the Siri-area in 2008 was app. 2.9
million barrels of oil (bbl) representing about 16 per cent of the company's
total oil and gas production in 2008.
DONG Energy's partners in the area are Noreco and RWE.
The production stoppage at Siri will adversely affect DONG Energy's expected
production from the area in 2009. As production from other DONG Energy fields
is expected to exceed expectations, the overall effect will not alter the
previous guidance for DONG Energy's financial results for 2009 or the company's
expected investment level.
For further information, contact
+45 9955 9560
Morten Hultberg Buchgreitz
+45 9955 9750
DONG Energy is one of the leading energy groups in Northern Europe. We are
headquartered in Denmark. Our business is based on procuring, producing,
distributing and trading in energy and related products in Northern Europe. We
have approximately 6,000 employees and generated more than DKK 60 billion (EUR
8.2 billion) in revenue in 2008. For further information, see