A.P. Møller - Mærsk A/S unit Maersk Oil announced on Dec. 1 that the Danish Underground Consortium has approved an investment of roughly 21 billion Danish kroner for the full redevelopment of the Tyra gas field in the North Sea.
Of the investment dubbed "the largest oil and gas project investment ever made in the Danish North Sea," about 17 billion Danish kroner is earmarked for modification to existing facilities and construction of new facilities and around 4 billion Danish kroner is eyed for costs related to the removal and decommissioning of current facilities, a Dec. 1 news release said. The redevelopment is sanctioned by a legislation to secure the investment that was implemented by the Danish parliament on Nov. 28 and Nov. 30.
Tyra field is operated by Maersk Oil on behalf of the Danish Underground Consortium, a partnership between A.P. Møller - Mærsk A/S, Royal Dutch Shell, Nordsøfonden A/S and Chevron Corp. It is the largest gas field in Denmark, processing 90% of the nation's gas production.
The redevelopment is rendered necessary by the subsidence of the chalk reservoir that has resulted in the platforms sinking by around 5 meters over the last 30 years and the narrowing of the gap between the sea and the platform decks, the company said. The project is envisioned to ensure continued operations of Tyra field for at least 25 years and to enable the production of more than 200 million barrels of oil equivalent, of which approximately two-thirds is expected to be made up of gas and the remaining one-third is anticipated to be oil. At its peak, the redeveloped gas field is projected to deliver about 60,000 boe/d.
"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," Maersk Oil CEO Gretchen Watkins said.
Production at Tyra field is scheduled to be shut-in for the redevelopment in November 2019 and to return online in July 2022.
As of Dec. 1, US$1 was equivalent to 6.27 Danish kroner.
