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    Maersk ‘Seeks Danish Upgrade, Not Closure’

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Summary

Maersk Oil is reportedly ready to tender early 2017 for a major redevelopment of its Tyra gas hub, currently so vital to the country's offshore gas production.

by: Mark Smedley

Posted in:

Natural Gas & LNG News, Europe, Corporate, Exploration & Production, News By Country, Denmark

Maersk ‘Seeks Danish Upgrade, Not Closure’

Hot on the heels of its parent’s impending corporate restructuring, Maersk Oil is reportedly ready to issue bid documents in early 2017 for a big redevelopment of its Tyra gas platforms offshore Denmark that are currently vital to the country's natural gas production and exports.

In April 2016, Maersk informed the Danish gas market that it would cease production from the Tyra East and Tyra West platforms in Denmark’s North Sea on October 1 2018 unless an economically viable solution for continued operations were identified this year. 

Upstream magazine reported September 23 that Maersk will issue bid documents early next year for a $4.5bn Tyra gas redevelopment, assuming it gets funding from the Danish government. A well-placed industry source has told Natural Gas World that the invitations to tender referred to in the article are understood to be for new development packages, and not for decommissioning work.

Maersk itself told NGW: "The dialogue with relevant authorities on framework conditions for Tyra is ongoing, and internally we have a project team working on various possible solutions, which includes talking to potential suppliers, but no decisions have been made yet."

Danish energy minister Lars Christian Lilleholt making 7th licence round awards on April 6 (Photo credit: Denmark's Nordsofonden)

 

The Tyra West and East platforms process over 90% of Denmark’s gas production. Alternative options for handling the country’s offshore gas are limited. Meanwhile the government is keen to extend offshore production and spur fresh exploration, awarding 16 offshore licences in April.

 

Mark Smedley