DONG Energy will now execute a permanent repair solution for the Danish North Sea platform Siri.

DONG Energy has worked intensively with external engineering companies and has now found a permanent solution for repairing the damaged Siri platform's subsea structure. It is critically important to get the platform adequately repaired in order to operate in a safe and responsible manner. The permanent solution will reinstate the integrity of the platform structure in compliance with the Danish Offshore Safety Act.

The costs will be considered operational expenses. Total costs in 2011 and 2012 amount to approx. DKK 2 billion. DONG Energy has a 50% share of the Siri licence.

The chosen concept consists of cable stays between the platform legs and a new seabed support structure to support the wellhead caisson. According to plan the repair work will be finalised in 2012.

Insurance claims related to sue and labour and permanent repair work are in process, but have not yet been settled. DONG Energy has not included any impact of insurance claims in the financial guidance for 2011.

"There are still significant oil resources in the Siri area and we are pleased to have found a solution for the Siri platform in order to produce the reserves from the Siri field and its related satellite fields in a safe manner many years ahead.", says Flemming Horn Nielsen, Vice President in DONG Energy, and responsible for the company's Danish oil and gas activities.

Tags: DONG Energy