Denmark's state-owned oil and gas group Dong Energy and Germany's Bayerngas will invest $2.2bn to develop the Hejre field in the Danish area of the North Sea.
Dong will be the operator of the project with a 60% stake and invest kr7.3bn ($1.3bn). Bayerngas, a gas transport and distribution company based in Munich, will hold the remaining 40% in the development.
Dong Energy CEO Anders Eldrup said it will be the largest project in the Danish region of the North Sea for several years.
"We expect that the development will create around 500 new permanent jobs and make a considerable contribution to Denmark's continued position as self-sufficient in oil and gas," Eldrup said.
The project will involve the development of a production platform, drilling of production wells and new pipelines, which will be connected to existing ones in the North Sea to transport the oil and gas from Hejre to Denmark.