This project is the largest oil and gas project investment ever made in the Danish North Sea, enabling Tyra to continue operations for at least 25 years.
The investment cost for the modification to existing facilities and construction of new facilities (CAPEX) is estimated at approx. 17bn DKK, and the cost in relation to removal and decommissioning of current facilities (ABEX) is estimated at approx. 4bn DKK.
Maersk Oil Chief Executive Officer, Gretchen Watkins, noted: “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.”
Once redeveloped, Tyra gas field will be able to provide enough gas to supply 1.5 million Danish homes, supporting energy security, future tax revenues and employment for Denmark.
Namely, Tyra is expected to deliver approximately 60.000 barrels of oil equivalent per day at peak, and it is estimated that the redevelopment can enable the production of more than 200 million barrels of oil equivalent. Approximately 2/3 of the production is expected to be gas and 1/3 to be oil.
Tyra processes 90% of the Denmark’s gas production and can be a catalyst for extending the life of the Danish North Sea.
The new infrastructure will provide opportunities for new gas projects in the northern part of the North Sea, where the most recent development, Tyra Southeast, delivered first gas in 2015.
The Danish Minister for Energy, Utilities and Climate, Lars Chr. Lilleholt (V), stated: “I am pleased that the DUC partners have made the final decision for this investment. The full reconstruction of Tyra is vital to the development of the Danish North Sea oil and gas sector.”
The Tyra field will be shut-in for the redevelopment in November 2019, and production is expected to begin again in July 2022.
Prior to this announcements, at the beginning of the year, Maersk Oil has issued a notification to the Danish gas market announcing that an economically viable solution for full recovery of the remaining resources in the Tyra field has not yet been identified, and that production from the Tyra field is consequently expected to cease 1 October 2018.
Later, in the summer, DNV GL announced that it has won a contract to provide independent verification services for the Maersk Oil redevelopment of the Tyra field.