Oil and gas fields off Denmark scheduled for development

Denmark's oil production reached a record average 186,000 b/d in 1995, and new development projects look set to raise the mark even higher this year. The Danish North Sea has seen a flurry of interest in exploration and new developments of late, triggered by a licensing round in 1995 that encouraged new players. Wood Mackenzie Consultants Ltd. noted the nine fields that produce the country's oil and gas are all operated by Dansk Undergrunds Consortium (DUC). DUC is operated by

Sept. 2, 1996

2 min read

Denmark's oil production reached a record average 186,000 b/d in 1995, and new development projects look set to raise the mark even higher this year.

The Danish North Sea has seen a flurry of interest in exploration and new developments of late, triggered by a licensing round in 1995 that encouraged new players.

Wood Mackenzie Consultants Ltd. noted the nine fields that produce the country's oil and gas are all operated by Dansk Undergrunds Consortium (DUC).

DUC is operated by Denmark's Maersk Olie & Gas AS. Maersk's partners in DUC are Royal Dutch/Shell Group and Texaco Inc.

Wood Mackenzie said that by the end of the fourth licensing round in 1995, 16 licenses were being operated by companies other than DUC (OGJ, Apr. 24, 1995, p. 42).

Key discovery

"Early exploration results were disappointing for these players," said the analyst, "but in 1995 Statoil's discovery of Siri field with its first well on 4th round acreage, and Amerada's successful 1 Rigs appraisal of South Arne field saw investment by new groups in the Danish sector begin to bear fruit."

DUC brought Svend and Roar fields into production in first half 1996, and is working to bring Harald and Lulita into production next year (table).

Wood Mackenzie said that while 1 Siri was the only wildcat drilled in 1995, its success has important implications for future exploration of fourth round licenses and nearby unlicensed acreage.

"Siri was designated a high risk prospect," said Wood Mackenzie, "since it was thought to be beyond the migration limit of oil from the Central Graben, and no significant finds have been made in the Tertiary sandstone strata in the graben itself."

At least six commitment wells are expected to be spudded on fourth round acreage in 1997 and 1998, with additional wells also likely, the analyst said

Most of these wells are expected to be drilled by state firm Danop, said Wood Mackenzie, and are likely to target Tertiary prospects, some of which are thought to be large, with possible extensions into Norwegian territory.