During 2017 Nordsøfonden's share of the produces oil and gas totaled 8.4 million barrels of oil and 745 million m3 of gas. While the oil production remained at the same level as in 2016, the gas production increased as a result of new gas production wells drilled in 2016 and 2017.
The total turnover of Nordsøfonden in 2017 amounted to DKK 4.1 billion. Nordsøfonden has paid company and hydrocarbon taxes and transferred dividend to the State. Thus, the total cash flow to the Danish State amounted to DKK 1.6 billion.
Major investments in the coming years
In 2017, Nordsøfonden has used more than DKK 1.7 billion of which production costs amounted to DKK 1.4 billion. During 2017 there have been only minor exploration activities and investments in new facilities.
However, in the coming years, investments will increase significantly. Late 2017, Nordsøfonden and the partners in DUC sanctioned the investment of up to DKK 21 billion in the redevelopment of the Tyra facilities.
The decision to rebuild followed after the Government and on behalf of the partners in DUC, Mærsk Olie og Gas A/S, in March 2017 agreed to an improved framework for oil and gas production from the Danish part of the North Sea. The agreement paved the way for the decision due to among other things a change in the depreciation regulation. With the redevelopment of the Tyra field facilities, the continued production from the Tyra field and the surrounding satellites and a central part of the energy infrastructure in the Danish part of the North Sea is ensured.
"The redevelopment of Tyra is the largest single investment made in the Danish part of the North Sea. Nordsøfonden and our partners in DUC have during 2017 worked intensively to prepare the technical and economic basis for the final investment decision. And now the work continues to complete this major project and to redevelop the facilities to be ready again for oil and gas production in 2022."
says Nordsøfonden’s CEO, Birgitta Jacobsen.
The improved framework terms in the agreement from March also cover future projects in the North Sea and may contribute to development of new fields in the Danish sector of the North Sea.
Birgitta Jacobsen concludes:
"An accessible modern infrastructure as well as a long-term and foresighted development in the Danish part of the North Sea is imperative for optimal use of the Danish resources. This can ensure our own production of oil and gas for many years."
Nordsøfonden and Nordsøenheden Annual Report for 2017