DCS: Massive buy for NorecoDUC licenses on DCS. Source: Noreco

DCS: Massive buy for Noreco

Royal Dutch Shell has exited Denmark E&P sector, following sale approval by the Danish authority, to Norwegian Energy Company (Noreco) for NOK 15.5 billion.

Shell has completed the sale of its 100 % shares in Shell Olie-og Gasudvinding Danmark B.V. (SOGU) to Noreco for a considerable amount, according to a press release from Shell.

Through this acquisition, Noreco has become the second-largest oil and gas producer in Denmark.

Noreco now has a 36.8% interest in the Danish Underground Consortium (DUC), a joint venture between Noreco, Total and Nordsøfonden, with 15 producing fields and related infrastructure. Following the completion of acquiring Maersk Oil in 2017, Total became the operator of all DUC fields.

In 2018, DUC produced approx. 154 000 boepd, according to DEA, with production routed via the four hubs.

DUC North Sea Portfolio: 15 fields on the Danish Continental Shelf and four production hubs: Halfdan, Tyra, Dan and Grom. Source: Noreco

Included in the acquisition are proven and probable (2P) reserves of approx. 195 MMboe per year-end 2018 based on the most recent independent assessment from Senergy (Lloyd’s Register) and net production of approx. 57 000 boepd in 2018, according to DEA.

Shell will still be active in Denmark via Shell Trading and Supply and Shell Energy Europe that will retain oil and gas lifting rights from the DUC assets for a period of time, downstream presence through A/S Dansk Shell, which includes the Fredericia refinery and the network of Shell-branded retail stations in Denmark operated by DCC.

The Danish Energy Agency plans to boost exploration activity on the Danish Shelf by acquiring and later providing a modern, affordable 3D depth-imaged data set for interested companies to use on the upcoming license round.