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Maersk Oil, partners to invest $3.4b in North Sea gas

Maersk said the investment will extend production at the Tyra field for at least 25 years

Gulf News

Copenhagen, Denmark: Danish conglomerate AP Moller-Maersk said on Friday it will invest 21 billion kroner ($3.4 billion, Dh12 billion) together with British-Dutch oil producer Shell, among others, to redevelop and extend the production life cycle of Denmark’s largest gasfield in the North Sea.

Maersk, whose oil company is being taken over by France’s Total, said the investment will extend production at the Tyra field, which was slated to close this year, for at least 25 years.

The group said the Tyra fields, which have supplied 90 per cent of Denmark’s gas, could under the redevelopment provide enough gas for 1.5 million Danish homes “at peak production”.

Maersk, which is based in Copenhagen, Denmark, and also operates the world’s largest container shipping business, estimates that the redevelopment of Tyra will yield more than 200 million barrels of oil equivalent. Approximately two-thirds of the production is expected to be gas; the rest will be oil.

Maersk operates the Tyra field on behalf of the Danish Underground Consortium, a partnership with Shell, the Danish state and Chevron Corp. based in San Ramon, California. In August, France’s Total agreed to buy the Maersk Oil unit for $7.45 billion in a deal expected to be completed during the first quarter of 2018.

“The redevelopment of Tyra is the largest investment carried out in the Danish North Sea,” Maersk Oil’s CEO, Gretchen Watkins, said in a statement. He said the field will be shut for redevelopment in November 2019, and production is expected to resume in July 2022.

With the deal, Total will become the number two operator in the North Sea and Denmark will become the regional hub for all its operations in Denmark, Norway and the Netherlands.

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