The Danish Underground Consortium (Duc) has approved a kr21bn ($3.36bn) investment to completely redevelop the Tyra gas field in the North Sea.

The announcement was made following Danish Parliament’s approval to implement appropriate legislation to secure the investment.

The redevelopment of the Maersk Oil-operated Tyra field will enable it to continue operations for at least 25 years.

“Production from the Tyra field itself has the potential to cover Danish gas consumption for a decade.”

Maersk Oil CEO Gretchen Watkins said: “Tyra has been a key asset in the history of Maersk Oil, and an important source of energy security for Denmark.

“The redevelopment of Tyra is the largest investment carried out in the Danish North Sea, and when completed in 2022, production from the Tyra field itself has the potential to cover Danish gas consumption for a decade.”

Approximately kr17bn ($2.72bn) of the total investment will be utilised to upgrade the existing facilities as well as construct new facilities at the field.

The remaining amount will be used to remove and decommission current facilities.

At peak production, the redeveloped field is set to provide approximately 60,000 barrels of oil equivalent per day.

It is estimated that more than 200 million barrels of oil equivalent can be recovered from the Tyra field, of which approximately 2/3 is expected to be gas and 1/3 to be oil.

The redevelopment of Tyra is expected to encourage additional activity in the Danish North Sea as the new infrastructure will enable operators to pursue new gas projects in the northern part of the North Sea.

Tyra field will be shut-in in November 2019 for redevelopment and production is expected to resume in July 2022.

Maersk Oil operates the field on behalf of the DUC, a partnership between A.P. Moller – Maersk (31.2%), Shell (36.8%), Nordsøfonden (20%) and Chevron (12%).