Maersk Oil has been given the go-ahead to fully redevelop the Tyra gas field in the Danish North Sea, investing 21 billion Danish kroner ($3.16 billion) to enable continued operations from the asset for at least 25 years.
The Danish Underground Consortium, a joint venture between A.P. Moeller-Maersk A/S (MAERSK-B.KO), Royal Dutch Shell Shell PLC (RDSA), Chevron Corp. (CVX) and Nordsofonden, have approved the investment after the Danish Parliament passed legislation to secure the investment.
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The redevelopment of Tyra will ensure continued production from Denmark's largest gas field, and will protect and rejuvenate important Danish North Sea infrastructure, Maersk Oil said in a statement.
At peak production, the redeveloped Tyra field will produce approximately 60,000 barrels of oil equivalent per day and provide enough gas to supply 1.5 million Danish homes.
The investment cost for the modification to existing facilities and construction of new facilities is estimated at DKK17 billion, and the cost in relation to removal and decommissioning of current facilities is estimated at DKK4 billion.
Maersk Oil Chief Executive, 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."
Production is expected from the redeveloped field in July 2022.
Maersk Oil is a unit of Danish conglomerate A.P. Moeller-Maersk A/S. It was sold to Total SA (TOT) earlier this year for $4.95 billion in a deal that is expected to close in the first quarter of 2018.
-Write to Dominic Chopping at firstname.lastname@example.org; Twitter: @domchopping @WSJNordics
(END) Dow Jones Newswires
December 01, 2017 04:01 ET (09:01 GMT)