France’s Total has agreed to purchase from Chevron all the share capital of Chevron Denmark Inc. which holds a 12 per cent interest in the Danish Underground Consortium (DUC), a 12 per cent interest in Licence 8/06, and a 7.5 per cent interest in the Tyra West pipeline.
The acquisition will increase Total’s operated share of DUC from 31.2 per cent to 43.2 per cent, the other partners of the consortium are Shell (36.8 per cent) and Nordsofonden (20 per cent, owned by the Danish State).
“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,” explains Michael Borrell, Senior Vice President, North Sea and Russia.
The deal is subject to approval of partners and the relevant authorities.
The consortium, which started production in 1972, currently operates 15 fields, all located in the Central Graben sector of the North Sea. It covers nearly 90 per cent of the Danish oil and gas production. In 2017 the production averaged 182,000 barrels of oil equivalent per day (boe/d).
The start-up of the Tyra gas field after redevelopment, sanctioned by the DUC partners in December 2017, is planned in 2022. It will enable a production capacity of 60,000 boe/d.
”This new transaction demonstrates our commitment to the development of the DUC and to the expansion of Total’s presence in Denmark,” Borrell added.