Posted by OilVoice Press - OilVoice
The $3.3bn Tyra Future redevelopment project is critical in enabling Denmark to achieve its gas supply requirements, while supporting future regional investments and protecting industry jobs, according to GlobalData, a leading data and analytics company.
An agreement with the Danish government was approved by parliament and the final investment decision on the project was made by the Danish Underground Consortium (DUC) operated by Maersk Oil in December.
The project's go ahead decision was influenced by the importance of Tyra as a hub in the Danish North Sea area, where the interruption of the production would have a significant negative impact in the country's oil and gas production.
Faced with either redevelopment or early decommissioning, the Tyra fields present a level of expenditure not seen before in the Danish sector but the DUC and the Danish government are eager to execute the project.
The estimated remaining recoverable reserves of the fields under the 1/62 License contiguous area is nearly 900 million barrels of oil equivalent or 78 percent of total remaining reserves of Denmark.
Matthew Jurecky, Energy Analyst at GlobalData, comments: “The recent agreement between the DUC and the government generates the necessary conditions for the continuation of the oil and gas production in Denmark, with special focus on the Tyra redevelopment.”
The DUC will initiate the Tyra redevelopment project by the end of 2019 with the temporary shut in of the Tyra related fields. Interruptions to the gas production from the North Sea fields will affect Denmark's self-sufficiency in gas supply, creating a deficit situation that will have to be mitigated with gas imports from neighboring countries. During 2020 and 2021, Denmark will see the country's consumption exceed total gas production as a result of the shutdown of Tyra and its nearby satellite fields.
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