Total expands presence on Danish Shelf through Chevron Denmark takeover
French oil company Total has agreed to purchase from Chevron all the share capital of Chevron Denmark Inc. which holds a 12% interest in the Danish Underground Consortium (DUC), a 12% interest in Licence 8/06, and a 7.5% interest in the Tyra West pipeline.
The acquisition will increase Total’s operated share of DUC from 31.2% to 43.2%, Total said on Tuesday. Other partners of the consortium are Shell (36.8%) and Nordsofonden (20%, 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.
To remind, Total in March this year completed the acquisition of Maersk Oil.
Maersk Oil’s key assets in the North Sea included a 8.44% of the giant Johan Sverdrup oil field, Norway; a 49.99% of the Culzean gas field, U.K.; a 31.2% of the Tyra producing gas field, Denmark.
”This new transaction demonstrates our commitment to the development of the DUC and to the expansion of Total’s presence in Denmark,” Borrell added.
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% 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.
Total noted that the transaction remains subject to approval of partners and the relevant authorities.