Production from Denmark's largest gas field will cease in 2018, if an economically viable solution is not identified in 2016, Denmark's Maersk Oil said on Monday.
The company said that it has issued a notification to the Danish gas market, announcing that production from the Tyra East and Tyra West gas fields in the Danish North Sea will be shut on Oct. 1, 2018.
The Tyra West and East facilities are approaching the end of their operational life due to a combination of more than 30 years of production and subsidence of the underground chalk reservoir, reducing the gap between the facilities and the sea.
"Under EU regulatory requirements, a decision to end production must be notified to the market in a timely manner," the company said.
Over the last 15 years, the Danish Underground Consortium spent around $155 million on reinforcing structures to prolong production.
"We are now evaluating long term economically viable solutions for recovery of the remaining resources. As part of this, we will consider the terms under which a rebuild of the facilities could take place. The basis for a decision needs to be in place by the end of 2016 to ensure future production from the field," said Martin Rune Pedersen, managing director for Maersk Oil Denmark.
The Tyra field, operated by Maerks Oil on behalf of Danish Underground Consortium, processes more than 90 percent of Denmark's gas production.
Maersk holds a 31.2 percent stake in the field while Shell holds a 36.8 percent share, Nordsofonden has a 20 percent stake and the remaining 12 percent is owned by Chevron.
Maersk Oil said last week that it will close its Houston office in the U.S. and cut around 100 jobs there.
The company also said its non-operated activities in the Gulf of Mexico, currently also run from Houston, will be transferred to its Copenhagen headquarters in the coming months.(Anadolu Agency)
