Maersk Needs Quick Deal to Avoid Tyra Shut Down

Carsten Sonne-Schmidt, chief financial officer of Maersk Oil, a unit of Danish conglomerate A. P. Moller-Maersk, told Reuters on a sidelines of an energy conference on Thursday:

• Maersk Oil must have a deal with the Danish government "within a few months" to avoid shutting down Tyra platform, a source of about 90 percent of Danish gas
• Sonne-Schmidt: "If we don't have a solution within a few month, then we will have to go ahead with the partial redevelopment of the field"
• "We will be shutting the Tyra platform, but then tying some of the existing wells to other platforms"
• "That means we will see a fast decline in gas production. We will not be able to supply Denmark with gas for decades"
• Said the agreement with the government over "fiscal incentives" would allow to fully redevelop the Tyra field extending the production from the Tyra and nearby fields
• "It's a win-win situation. Personally, as an economist, I'm optimistic," Sonne-Schmidt said about the prospects of reaching an agreement with the government" Further company coverage:

Reporting by Nerijus Adomaitis