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Maersk Oil Gets Approval For DKK 21 Bln Tyra Gas Project

Maersk Oil said that the Danish Underground Consortium or DUC has approved an investment of about 21 billion Danish Kroner in the full redevelopment of the Tyra gas field. The announcement follows the Danish Parliament's approval to implement legislation to secure the investment.

The company noted that the announcement represents the largest oil and gas project investment ever made in the Danish North Sea, enabling Tyra to continue operations for at least 25 years. At peak production, the redeveloped Tyra gas field will provide enough gas to supply 1.5 million Danish homes, supporting energy security, future tax revenues and employment for Denmark.

Maersk Oil Chief Executive Officer, Gretchen Watkins, said: "Tyra has been a key asset in the history of Maersk Oil, and an important source of energy security for Denmark. The redevelopment of Tyra is the largest investment carried out in the Danish North Sea, and when completed in 2022, production from the Tyra field itself has the potential to cover Danish gas consumption for a decade."

The investment cost for the modification to existing facilities and construction of new facilities (CAPEX) is estimated at about 17 billion Kroner, and the cost in relation to removal and decommissioning of current facilities (ABEX) is estimated at about 4 billion Kroner.

The redeveloped Tyra is expected to deliver approximately 60.000 barrels of oil equivalent per day at peak, and it is estimated that the redevelopment can enable the production of more than 200 million barrels of oil equivalent. Approximately 2/3 of the production is expected to be gas and 1/3 to be oil.

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