Rising oil and gas prices
Nordsøfonden’s business has been heavily influenced by the recent geopolitical developments and the ongoing energy crisis. The increases in prices of oil and gas, combined with higher than anticipated production, contributed to profits for 2022 that were significantly higher than in 2021.
Nordsøfonden’s production in 2022 was on a par with 2021, amounting to 4.1 million barrels of oil and 2.1 million MWh of gas. The unchanged figures for oil and gas production can be attributed to focus on production optimisation, and to the two new gas wells in the Halfdan field which have offset the natural decline in production from the fields.
In 2022 Nordsøfonden generated profits of slightly more than DKK 1 billion, transferred DKK 1.2 billion in dividends to the Danish treasury and incurred hydrocarbon taxes in the amount of DKK 1.5 billion.
The new Tyra II is in place
The redevelopment of the Tyra field installations was once again the most significant activity undertaken by Nordsøfonden and DUC in 2022. A milestone was reached in early October when the giant, 17,000-tonne process platform was installed as the eighth and final module at Tyra II. This means that all the new platforms are now in place at the Tyra field in the North Sea, and that Tyra II has attained its final shape.
A significant amount of work remains to be done, however, to hook up and commission the new modules at Tyra II before start-up, which is scheduled for the winter season 2023/24. Once the Tyra facility is brought on stream again, the increased Danish production of oil and gas will help bolster supply reliability in Europe.
The current supply situation in Europe underlines the importance of securing a stable supply of oil and, in particular, gas to Denmark and the rest of Europe. The completion of Tyra II is a huge and complex assignment, and intensive work is under way – both on the modules out in the North Sea and behind desks onshore – to bring the new installation on stream, relates Birgitta Jacobsen, CEO.
Carbon storage, a new business area
In 2022 Nordsøfonden was named the state participant in all licences for carbon storage in Denmark and thus took on a new area of responsibility. Denmark’s subsurface resources are to play a key role in helping to achieve its climate targets. There is appreciable storage potential in Denmark’s subsurface assets, which places Denmark in an excellent position to become a European hub for carbon storage.
Denmark’s subsurface resources – offshore, nearshore and onshore – provide excellent opportunities for carbon storage. Nordsøfonden has extensive experience with and insight into Denmark’s subsurface assets, which we will be using to develop and reinforce Denmark’s position in the field of carbon storage, explains Birgitta Jacobsen, CEO.
Nordsøfonden is participating with a 20 percent share in the first three storage licences, which were awarded in February 2023. Two of the licences cover the areas hosting the ongoing storage projects Bifrost and Greensand.
Read the 2022 Annual Report