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.
An agreement with the Danish government was approved by the 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 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 (mmboe) or 78% of total remaining reserves of Denmark. The Tyra field and the directly connected satellite fields Tyra SE, Valdemar, Harald, Svend and Roar are estimated to contain nearly 13% of Denmark’s reserves with a total of 154mmboe. All of these fields depend upon Tyra infrastructure for ongoing production.
|Danish Underground Consortium Remaining Reserves (mmboe)
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The recent agreement between the DUC and the government generates the necessary conditions for the continuation of the oil and gas production is Denmark, with special focus on the Tyra redevelopment.
The DUC will initiate the Tyra redevelopment project by 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. After 2022, the situation is expected to be normalized with the resumption of production from all the producing fields in the license, together with the announced gas field Hejre.