Denmark to take 20 pct stake in N.Sea oil producer DUC
Denmark has tightened its grip on the country's North Sea oil income by taking a 20 percent stake in oil producer the Danish Underground Consortium (DUC), owned by A.P. Moller-Maersk, Chevron and Royal Dutch Shell, Reuters reports.
Danish state-run fund Nordsofonden, which bought the stake, will also push to boost DUC's oil output.
"Our role as a commercial partner in DUC is to provide the state with the best possible economic returns," Nordsofonden chief executive Peter Helmer Steen said.
"From a 30-year perspective, I see a huge potential for increased production from both existing fields and new fields."
He told Reuters the state would press Maersk Oil, the oil and gas arm of the A.P. Moller-Maersk group, Shell and Chevron to increase the level of oil and gas extraction to more than 30 percent from currently around 20 percent.
"We will work towards increasing the degree of extraction to over 30 percent," Steen said.
DUC is responsible for most of the petroleum output from Denmark's North Sea oil and gas fields. Denmark is the third-biggest producer in western Europe after Norway and Britain.
DUC operates 16 fields, with a daily production of about 180,000 barrels of oil and 14 million cubic metres of gas. The group's oil and gas production has been falling for years as North Sea oil fields mature.
Its production of oil and condensate fell by about 0.3 percent in June to 179,700 barrels from the previous month, and by about 9 percent from June last year.
Maersk's stake in DUC will fall to 31.2 percent, Shell's holding to 36.8 percent, and Chevron's to 12.0 percent.
A.P. Moller-Maersk previously held a 39 percent stake in DUC, while Shell had 46 percent and Chevron held 15 percent.
The financial impact of Nordsofonden's action has already been absorbed by Maersk Oil through other changes in terms and conditions introduced by the 2003 sole concession extension agreement, the company said in the statement.
"Nordsofonden will be a true partner. It will contribute to and receive benefits from the DUC according to its 20 percent working interest," Jakob Thomasen, chief executive of Maersk Oil said in a statement.
"It is taking the role as an active company operating on a commercial basis and rationale," Thomasen said.
Shares in A.P. Moller-Maersk were down 0.7 percent by 1110 GMT, against a 1.1 percent fall in the Copenhagen stock exchange's benchmark index.