Largest Ever Danish North Sea Investment Approved
The Danish Underground Consortium has approved an investment of approximately $3.35 billion for the full redevelopment of Tyra, Denmark's largest gas field. The investment will enable it to continue operations for at least 25 years and represents the largest oil and gas project investment ever made in the Danish North Sea.
The field requires redevelopment due to subsidence of the chalk reservoir which has led to the platforms sinking by around five meters (16 feet) over the last 30 years. This has reduced the gap between the sea and the platform decks.
The Tyra field is operated by Maersk Oil on behalf of the consortium which is a partnership between A.P. Moller – Maersk (31.2 percent), Shell (36.8 percent), Nordsøfonden (20 percent) and Chevron (12 percent).
Tyra is the center of Denmark’s national energy infrastructure, processing 90 percent of the nation’s gas production. The announcement follows the Danish Parliament’s approval to implement legislation to secure the investment.
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 will enable the production of more than 200 million barrels of oil equivalent. Approximately two thirds of the production is expected to be gas and one third to be oil. At peak production, the redeveloped Tyra gas field will 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 approximately $2.7 billion, and the cost in relation to removal and decommissioning of current facilities is estimated at approximately $635 million.
New development projects and third party tie-ins are expected as part of the redevelopment project. The Tyra field will be shut-in for the redevelopment in November 2019, and production is expected to recommence in July 2022.