Page 5 - EurOil Week 49

EurOil COMMENTARY EurOil

Map showing Tyra and
other Danish offshore
platforms.

The ministry added that the decision would countries, will also have an impact on the neigh-
result in $13bn of revenue losses over the next bouring UK.”
three decades. The UK recently announced it was planning
a review of its oil and gas licensing policy, to
Broader trend ensure that it aligns with the country’s climate
Denmark is following in the footsteps of several goals.
other countries that have implemented bans on State producer Nordsofonden welcomed the
domestic petroleum exploration such as Ireland, agreement between the government and parlia-
Italy and New Zealand. But it is by far the biggest ment, stating that it “provides a clear framework
oil and gas producer to take such a step. and security for the industry.”
“This is the final blow for Danish hydrocar- “It ensures the continuation of the existing
bon exploration which was in need of revival,” activities in the Danish part of the North Sea and
GlobalData analyst Daniel Rogers commented. provides opportunities for future mini-rounds
“The last hydrocarbon discovery in Denmark and neighbouring block licences,” the company
was made over five years ago and since then, lit- said in a statement. “Nordsofonden looks for-
tle success has been met by the limited drilling ward to continuing to produce energy and raw
activity in the country.” materials for the Danish society.”
Operator Hess ended the country’s five-year The government is also set to allocate more
exploration drilling hiatus in 2019 by sinking the funds to explore the potential for carbon capture
Jill-1 well, but it failed to find commercial quan- and storage (CCS) in the North Sea, as a means
tities of hydrocarbons. of decarbonising Danish heavy industry. The
Denmark produced 4.3 bcm of gas in 2018, country’s main CCS venture is Project Green-
but its gas output has fallen significant since sand, a plan to store up to 450,000 tonnes per
the closure last year of the Tyra field, so that a year of CO2 in the North Sea’s depleted Nini
redevelopment programme can take place. The West field. Norwegian certification body DNV
project’s restart has been delayed a year until GL has confirmed that the subsea reservoir is
2023 in light of the coronavirus pandemic. In fit for the purpose. Commercial operations are
the meantime, Denmark will be mostly reliant expected to start in 2025.
on gas imports. Nordsofonden said it saw great potential in
“These plans build on a more regional move- CCS and was already looking into ways of elec-
ment towards lower carbon energy that has been trifying its North Sea facilities.
growing across Europe,” Rogers continued. “It “These technologies will contribute towards
will be interesting to see if this decision, as well Denmark’s goal of a 70% reduction in CO2 emis-
as others made or under review by surrounding sions by 2030,” the company said. ™

Week 49 10•December•2020 www. NEWSBASE .com P5