Join Our Newsletter - Get important industry news and analysis sent to your inbox – sign up to our e-Newsletter here
X

Maersk Oil to cease production on Tyra field at North Sea in October 2018

02 Jan 2017 (Last Updated January 2nd, 2017 18:30)

Maersk Oil has raised concerns with the Danish gas market about the lack of an economically viable solution to fully recover the remaining resources from the North Sea’s Tyra field.

Maersk Oil to cease production on Tyra field at North Sea in October 2018

Maersk Oil has raised concerns with the Danish gas market about the lack of an economically viable solution to fully recover the remaining resources from the North Sea’s Tyra field.

The notification also stated that this field will stop all production from 1 October 2018.

According to EU regulations, every decision that can affect production must be communicated to the market.

Maersk Oil CEO Martin Rune Pedersen said: “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.”

In the last 15 years, the company had spent more than Dkr1bn ($140m) to refurbish the Tyra structures. However, this facility is no longer safe to continue production due to the storm wave impact and continuous subsidence of an underground chalk reservoir.

"Tyra has since 1984 been the main hub for gas production and processing in the Danish North Sea."

Maersk Oil chief operating officer Martin Rune Pedersen said: “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.”

The Tyra field is operated by Maersk Oil on behalf of the DUC, a partnership between AP Molle-Maersk (31.2%), Shell (36.8%), Nordsøfonden (20%) and Chevron (12%).

The company stated that the remaining potential of the Danish North Sea is widely recognised. Discussions with Denmark’s authorities will continue to identify the terms that will enable future investments, including investments in rebuilding Tyra, to secure long-term activities and jobs in the Danish North Sea.


Image: Tyra East Platform. Photo courtesy of Maersk Oil.