The Danish North Sea high-pressure, high-temperature Hejre oil field project continues to be challenged by delays from its supplier consortium, according to operator DONG Energy.

Henrik Poulsen, the firm's CEO and President, said DONG continues to press for first oil in 2017, but that the firm was in the process of updating its view on the scheduling impact of the delays.

The field is 292km north west of Esbjerg and is estimated to contain about 170 MMboe, 5000-6000m deep, at 1010 bar and 160°C.

The field, the largest oil and gas project in the Danish sector of the North Sea, had been due on stream in 2016. While the jacket was installed last year, the topsides are yet to be completed. First steel cut on the 13,000-tonne topsides was in 2013, at Daewoo Shipbuilding & Marine Engineering in South Korea, with sailaway due this year.

Speaking in a 2Q company update, he said the development's drilling program was proceeding according to plan. The first two production wells were completed in 1H 2015, confirming the "significant potential of the area."

Meanwhile Poulsen spoke of the general exploration and production climate. He said: "The E&P business continues the efforts to adapt to a new market reality. Focus is on building an efficient and well balanced portfolio of producing assets and pipeline opportunities capable of creating value under a new set of oil and gas price assumptions. During first half of 2015, solid progress has been made in terms of reducing costs and refocusing exploration activities."

Source: www.oedigital.com

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