Denmark’s largest gas field need to be redeveloped if it is going to continue producing safely into the next decade.
Since 1984, the Tyra field has been at the centre of Denmark’s national energy infrastructure processing 90% of the nation’s gas production.
But it requires redevelopment due to subsidence of the chalk reservoir which has led to the platforms sinking by around five metres in the last 30 years.
This has reduced the gap between the sea and the platform decks and investment is required if the Tyra complex is to continue producing safely into the next decade.
The field had been anticipated to come off stream in 2018 but is now expected to produce until the end of 2019 at which point production will be suspended.
Maersk Oil has agreed a full redevelopment of the Tyra field with the Danish Government which the operator claims will facilitate future investments in the area and protect industry jobs.
The new agreement provides the terms that enable its partners in the Danish Underground Consortium to progress a full redevelopment plan for the Tyra facilites.
An investment decision is expected by the end of 2017.
Maersk claim a full redevelopment will restore the current infrastructure, including the gas processing hub and five surrounding satellite fields which include Harald and Valdemar and thereby ensure continued production from the Tyra field.
Furthermore the new asset could enable future production of oil and gas volumes from the DUC license area as well as third party projects.
Maersk Oil’s chief operating officer, Martin Rune Pedersen, said: “The agreement makes the Danish North Sea a more competitive investment area for oil and gas companies to invest and to develop new opportunities.
“A redevelopment of Tyra can be a catalyst for prolonging the life of the Danish North Sea. It can protect valuable revenues to the Danish state and Danish jobs– especially in the Esbjerg area. We will now issue tenders and progress engineering work towards detailed plans in preparation of a final investment decision by end 2017.”
Maersk Oil Chief Executive, Gretchen Watkins, added: “Today’s announcement reaffirms the commitment Maersk Oil has made to invest in the future of North Sea oil and gas and, in particular, in our heartland in Denmark.
“The recognition of shared value between government and industry in investments like the redevelopment of Tyra are a blueprint for the type of collaboration that will support value creation for decades to come.”
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