Denmark Slightly Raises Oil and Gas Production View

By MarEx 2013-06-27 08:19:00

The Danish Energy Agency (DEA) on Thursday slightly raised its outlook for the country's oil and gas production over the next five years.

The agency said it now expected oil production next year to be 10.5 million cubic metres, a modest increase from a previous estimate of 9.7 million cubic metres given in November. It also raised its estimate for output in 2015 and 2016.

For this year, it kept its forecast steady at 10.7 million cubic metres.

One cubic metre of oil is equivalent to approximately 6.3 barrels.

Denmark's oil production has halved since 2004, and the agency said output in the next five years would be steady partly due to new drilling in the Hejre field, which is expected to begin in 2015.

Unlisted Dong Energy owns 60 percent of the concession in the Hejre field, while German energy company Bayerngas owns the remaining 40 percent.

DEA said this year's production of gas was now estimated to reach 4.0 billion cubic metres, up from its November forecast of 3.4 billion cubic metres. Next year's forecast was raised to 4.1 billion cubic metres.

At present, 86 percent of Denmark's total oil production and about 97 percent of total gas production is produced by Danish shipping and oil group A.P. Moller-Maersk.

Reporting by Shida Chayesteh; editing by James Jukwey (C) Reuters 2013.