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Sunday, November 19, 2017

Maersk to Shut Down Denmark's Largest Gas Field

December 30, 2016

Photo: Maersk Oil

Photo: Maersk Oil

 Maersk Oil said that production from the Tyra field was likely to cease in 2018 as efforts to find an “economically viable solution” for full recovery had not been found.

 
"Maersk Oil has today issued a notification to the Danish gas market. This notification announces that an economically viable solution for full recovery of the remaining resources in the Tyra field has not yet been identified,  and that production from the Tyra field is consequently expected to cease 1 October 2018," said a press statement.
 
Under EU regulatory requirements, a decision impacting production must be notified to the market in a timely manner.
 
“Tyra has since 1984 been the main hub for gas production and processing in the Danish North Sea. The Tyra facilities are approaching the end of their operational life, and together with our partners in DUC we have assessed solutions for safe decommissioning and possible rebuilding of the Tyra facilities,” says Martin Rune Pedersen, Chief Operating Officer, Maersk Oil.
 
Despite more than DKK 1 billion spend on reinforcing the Tyra structures over the past 15 years, the facilities cannot safely continue production due to new knowledge on storm wave impact, combined with subsidence of the underground chalk reservoir which reduces the gap between the platforms and the sea.
 
“We have not yet found an economically viable solution for full recovery of the remaining resources in the Tyra field, and safe decommissioning of Tyra will therefore be commenced with the perspective of ceasing production on 1 October 2018. In January 2017 we will have to reallocate resources from Tyra rebuild planning to engineering work for a detailed plan to discontinue the Tyra field as the Danish hub for gas processing,” says Martin Rune Pedersen, Chief Operating Officer, Maersk Oil.
 
The remaining potential of the Danish North Sea is widely recognised. The dialogue with Danish authorities will be continued in an effort to identify the terms that will allow future investments, including investments in rebuilding Tyra, to secure long-term activities and jobs in the Danish North Sea.
 
Tyra is Denmark’s largest gas field and the facilities are the processing and export centre for all gas produced by the Danish Underground Consortium (DUC). More than 90% of Denmark’s gas production is processed through the facilities.
 
Tyra East and Tyra West is also the hub for a number of smaller facilities in the Tyra field. This includes the neighbouring unmanned facility, Tyra Southeast, which was extended in 2015.
 
The Tyra field is operated by Maersk Oil on behalf of the DUC, a partnership between A.P. Moller – Maersk (31.2%), Shell (36.8%), Nordsøfonden (20%) and Chevron (12.0%).
 
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