December 30, 2016 / 2:32 PM / in 7 months

Maersk Oil confirms plan to shut Tyra field in 2018

2 Min Read

(Adds government quote)

Dec 30 (Reuters) - Maersk Oil, a subsidiary of Danish shipping and oil company A.P. Moller-Maersk, confirmed in a statement on Friday that it planned to stop production at its Tyra gas field in October 2018 as it would no longer be economically viable.

* Maersk says an economically viable solution for the full recovery of the remaining resources in the field in the Danish part of the North Sea has not yet been identified.

* Says production from the Tyra field is consequently expected to cease on Oct. 1, 2018.

* The company warned in April that Tyra, Denmark's largest gas field, would have to be shut down if no viable solution had been found by the end of 2016.

* The Tyra facilities are nearing the end of their operational life, due to a combination of more than 30 years production and subsidence of the underground chalk reservoir.

* Maersk says it will have to reallocate resources being used to plan the rebuilding of Tyra to come up with a detailed plan to discontinue operations at the field.

* Says dialogue with Danish authorities will continue in an effort to identify terms that would allow future investment in the field.

* "The discussions between the government and Maersk are still ongoing, and we hope to reach a final settlement in the beginning of next year," Minister of Energy and Climate Lars Christian Lilleholt said in a statement. Further company coverage: (Copenhagen newsroom; editing by David Clarke)

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