• Natural Gas News

    Danish Producer Nordsofonden Sells Less for More

Summary

The Danish offshore is declining but prices were up; and a major investment programme is underway.

by: William Powell

Posted in:

Natural Gas and LNG Latest & Breaking News, Europe, Corporate, Exploration & Production, Financials, Political, News By Country, Denmark

Danish Producer Nordsofonden Sells Less for More

Danish state-owned producer Nordsofonden reported a 2018 profit of Dk 464mn ($69mn), on sales of oil and gas worth Dk 4.4bn, it said April 26. 

Nordsofonden's oil and gas production in 2018 was 7.1mn barrels of oil and 650mn m3 gas. It said: "Production has decreased by almost 15% compared to 2017 due to the natural decline in production from the existing fields. The fact that this year's result is still close to the result for 2017 is due to higher oil and gas prices in 2018."

Nordsofonden invested Dk 730mn, "a significant increase compared to previous years." The vast majority – a total of Dk 600mn – went on the redevelopment of the Tyra field's facilities. In 2017, Nordsøfonden, together with the other partners in the consortium DUC decided to invest close to Dk 21bn in the Tyra field. Nordsofonden will therefore continue to invest large sums in the new facilities in the coming years, it said. Total has 43.2% of DUC; the other partner is Anglo-Dutch Shell (36.8%).

The facilities are a central part of the energy infrastructure in the Danish part of the North Sea, and with the redevelopment of the Tyra field, continued production from Tyra and the surrounding fields is secured, it said.

CEO Birgitta Jacobsen said: "The Tyra redevelopment project is the largest single investment made in the Danish part of the North Sea, and the huge project is already well underway. Production is scheduled to be temporarily closed down in autumn 2019. Here the replacement of the legacy facilities will begin, and we should be ready to produce oil and gas from the Tyra field again in 2022.

"Energy is a necessity in our modern society, and oil and gas will continue to be of importance for many years to come. This applies even though the green transition is underway, since there will continue to be a demand for oil and gas for heating, transport and the petrochemical industry.

"We can secure our own production of oil and gas for many years with a visionary development of the Danish part of the North Sea. And here, an accessible, modern infrastructure, as the Tyra facilities, is an essential part of the foundation."