Total to Increase DUC Stake
Total has agreed to purchase from Chevron all the share capital of Chevron Denmark Inc, which holds a 12 percent interest in the Danish Underground Consortium (DUC), a 12 percent interest in License 8/06, and a 7.5 percent interest in the Tyra West pipeline.
The acquisition, which remains subject to approval from partners and relevant authorities, would increase Total’s operated share of DUC from 31.2 percent to 43.2 percent. The other partners of the consortium are Shell (36.8 percent) and Nordsofonden (20 percent).
“Following the 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,” Michael Borrell, North Sea and Russia senior vice president at Total, said in a company statement.
“This new transaction demonstrates our commitment to the development of the DUC and to the expansion of Total’s presence in Denmark,” he added.
The DUC, which started production in 1972, currently operates 15 fields, all located in the Central Graben sector of the North Sea. It covers nearly 90 percent of Danish oil and gas production.
Total announced the closing of the acquisition of Maersk Oil in March this year. In a statement released on March 8, Total Chairman and CEO, Patrick Pouyanne, described the acquisition as a “success on many levels”.
Earlier this week, Total announced a major gas discovery offshore UK. In a statement published on Twitter on September 24, Andy Samuel, chief executive of the UK’s Oil & Gas Authority, said the discovery was great news for the UK’s security of supply.
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