French oil and gas company Total has signed an agreement with the American oil firm Chevron to acquire all the share capital of its subsidiary Chevron Denmark to expand its presence in the North Sea.
Chevron Denmark holds a 12% interest in the Danish Underground Consortium (DUC), a 12% interest in licence 8/06, and a 7.5% stake in the Tyra West pipeline.
Following completion of the transaction, Total’s operated share of DUC will increase from 31.2% to 43.2%. The other partners of the consortium include Shell and Nordsofonden, which own 36.8% and 20% stakes, respectively, in DUC.
Total North Sea and Russia senior vice-president Michael Borrell said: “Following the completion of the Maersk Oil acquisition, this deal is a great opportunity to further expand our presence on the Danish Shelf and increase our interest in an asset operated by Total.
“We will further benefit from the ongoing redevelopment of the Tyra field. This new transaction demonstrates our commitment to the development of the DUC and to the expansion of Total’s presence in Denmark.”
The transaction is subject to the approval of the partners and relevant authorities.
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DUC consortium started production in 1972. It currently operates 15 fields, all located in the Central Graben sector of the North Sea. It covers approximately 90% of the Danish oil and gas production.
In 2017, the average production stood at 182,000 barrels of oil equivalent per day (boe/d).
The commencement of the Tyra gas field following completion of redevelopment, which was sanctioned by the DUC partners last December, is planned for 2022.
The Tyra gas field will have a production capacity of 60,000boe/d.