Denmark approves $3.36B Tyra field redevelopment

Maersk Oil has informed that the Danish Underground Consortium (DUC) has approved an investment of approximately 21bn DKK (around $3.36 billion) in the full redevelopment of the Tyra gas field. The announcement follows the Danish Parliament’s approval to implement legislation to secure the investment.

The redevelopment of Tyra, 225 km west of Esbjerg, will ensure continued production from Denmark’s largest gas field, and will protect and rejuvenate important Danish North Sea infrastructure, Maersk Oil said.

According to Maersk Oil, this will be the largest oil and gas project investment ever made in the Danish North Sea, enabling Tyra to continue operations for at least 25 years.

The Tyra field requires redevelopment due to subsidence of the chalk reservoir which has led to the platforms sinking by around 5 meters over the last three decades. This has reduced the gap between the sea and the platform decks.

Tyra is Denmark’s largest gas field. Its facilities are the processing and export center for all gas produced by the Danish Underground Consortium (DUC). The consortium consists of Maersk (31.2%), Shell (36.8%), Nordsøfonden (20%) and Chevron (12%).

200 million barrels

 

The redeveloped Tyra is expected to deliver approximately 60.000 barrels of oil equivalent per day at peak, and it is estimated that the redevelopment can enable the production of more than 200 million barrels of oil equivalent. Approximately 2/3 of the production is expected to be gas and the rest to be oil.

At peak production, the redeveloped Tyra gas field will provide enough gas to supply 1.5 million Danish homes, supporting energy security, future tax revenues and employment for Denmark, Maersk Oil said.

“…when completed in 2022, production from the Tyra field itself has the potential to cover Danish gas consumption for a decade.”

“When completed in 2022, production from the Tyra field itself has the potential to cover Danish gas consumption for a decade.”

Maersk Oil Chief Executive Officer, Gretchen Watkins, said: “Tyra has been a key asset in the history of Maersk Oil, and an important source of energy security for Denmark. The redevelopment of Tyra is the largest investment carried out in the Danish North Sea, and when completed in 2022, production from the Tyra field itself has the potential to cover Danish gas consumption for a decade.”

The redevelopment of Tyra is enabled by the legislation implemented by the Danish Parliament 28 and 30 November 2017.

The Danish Minister for Energy, Utilities and Climate, Lars Chr. Lilleholt (V), said: “I am pleased that the DUC partners have made the final decision for this investment. The full reconstruction of Tyra is vital to the development of the Danish North Sea oil and gas sector. Not just to Maersk Oil – but to many companies relying on Tyra as a central gas hub.”

Maersk Oil’s Chief Operating Officer, Martin Rune Pedersen, said: “The redevelopment of Tyra is evidence of a shared interest in prolonging the life of the Danish North Sea. The investment in this globally significant oil and gas project will support several thousand Danish jobs, and it can enable future significant industry investments in new development projects made possible by the redeveloped Tyra gas infrastructure.”

The Tyra field will be shut-in for the redevelopment in November 2019, and production is expected to resume in July 2022.

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