Delays in fabrication of a major process module have pushed back progress on the TotalEnergies-led redevelopment of the Tyra field off Denmark.
A 3 August update from project partner Norwegian Energy Company (Noreco) said the first gas for the project has been revised to winter 2023/2024.
TotalEnergies (LON:TTE) leads the Danish Underground Consortium (DUC) venture behind the major project, with a share of 43.2%, alongside Noreco (36.8 %) and Nordsøfonden (20%).
Noreco (OSL:NOR) said global supply chain challenges have impacted the extent to which fabrication work on the Tyra process module (TEG) has been completed in the yard in Batam.
It is the second major slip for the project, which had already been pushed back from 2022 into mid-2023 as a result of COVID-19 delays.
The TEG is last remaining module still undergoing onshore fabrication, with the other seven components already in place at the field.
The load-out of the module will begin at McDermott’s yard in Batam in an incomplete state with approximately 580,000 hours of remaining work, and approximately 165,000 hours required to reach first gas.
Noreco said this was mainly caused by the overall performance at the yard where overhang from COVID-19 has “challenged the quality and progress” and mitigation efforts have proved not to be sufficiently effective.
The sail away of the module remains on schedule and is expected in early September where the TEG will be transported directly to the Tyra field by heavy lift vessel GPO Emerald followed by a lift and installation by Heerema’s Sleipinir.
Accordingly, TotalEnergies has also revised plans for the ongoing hook-up and commissioning phase of the hub, though Noreco said it has identified several areas of “potential improvements and learnings” which should help drive performance.
As a result, expenditure for Tyra II is also expected to rise. Final amounts are being formalised, however Noreco said a gross project budget to first gas is estimated at around 24 billion DKK ($3.3bn).
Net to Noreco, the remaining expenditure to reach first gas is approximately $300 million, implying a net increase of approximately $120m compared to the previous first gas budget.
A P50 best estimate of the timeline now puts first gas in December 2023, or by March 2024.
With continued cash flow from Noreco’s three producing hubs – Halfdan, Dan and Gorm – the company maintains it is fully funded to deliver Tyra II based on the revised forecasts.
Chief operating officer Marianne Eide said: “Today’s news on a revised scheduled for Tyra is disappointing, however we are now entering the last stage of the Tyra Re-development with a good definition of the work scope remaining to achieve first gas.
“We now have a robust plan built on experience from the initial nine months of offshore hook-up and commissioning and we expect to add more than 500 offshore workers. The complexity of the operations at Tyra will increase and safe operations is our main priority.
“In parallel with delivering Tyra we are working to increase gas production from our producing assets in the DUC. We have seen positive gains from the Halfdan stimulation campaign and for the upcoming infill wells we are prioritising gas rich targets”