Total Raises Stake in Largest Danish Producer

Total has agreed to purchase from Chevron its entire share capital in Chevron Denmark, including the 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, it said September 25.

The transaction, on which Total did not put a price tag, remains subject to approval of partners and the relevant authorities.

The acquisition will increase Total’s operated share of DUC from 31.2% to 43.2%. The other partners are Anglo-Dutch Shell (36.8%) and the Danish state-owned Nordsofonden (20%). 

“Following the [March 2018] 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,” explained Michael Borrell, senior vice president, North Sea and Russia. ”This new transaction demonstrates our commitment to the development of the DUC and to the expansion of Total’s presence in Denmark.”

Chevron confirmed it signed a sales and purchase agreement with Total for its upstream interests in Denmark, subject to goverment approvals.

DUC operates 15 fields, all in the Central Graben sector of the North Sea, and covers nearly 90% of the Danish oil and gas production which last year averaged 182,000 barrels of oil equivalent/day (boe/d). The start-up of the Tyra gas field after its impending $3.4bn redevelopment, sanctioned by the DUC partners in December 2017, is planned in 2022 and it will enable a production capacity of 60,000 boe/d - so enough gas at peak to supply 1.5mn Danish homes.  (Banner photo: Tyra West platform, courtesy of Maersk Oil, now Total)