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South Arne production permit extended

South Arne production permit extended

17-10-2016 10:00:00


The Danish Energy Authority has extended the license to produce oil and gas from the South Arne field with 20 years until 2047. This means that Hess and the other companies in the license can invest in the most optimal recovery, ensuring the state maximum income and creating jobs and growth in Denmark.

"I'm pleased that the companies behind the South Arne license will have the security that they have sought to invest long-term in the South Arne Field. This means that companies can plan the most optimal recovery from the field. This ensures Danish jobs and a higher recovery will also increase government revenue," says the Minister of Energy, Supply and Climate Lars Chr. Lilleholt.

The South Arne Field is one of Denmarks largest chalk fields, and has since 1999 produced about 170 million barrels of oil from the field. Hess, together with partners DONG E & P and Danoil Exploration has applied for an extension of their permit (7/89) to produce oil and gas for 20 years.

With the extension, the companies can produce from the field until 2047. The Danish Parliament's Energy, Supply and Climate Committee has been referred the matter, and only the members of Enhedslisten and Alternativet did not support the extension of the license.

Today, oil is loaded from the South Arne platform's underwater tank for tankers, while the gas is transported via gas pipeline to shore. With the extension of the license, oil production from the South Arne will be transported through the pipeline from the Gorm facility to land, when the current exemption expires in 2027. It will increase the utilization of capacity in the pipeline.

The extension will provide better opportunities to set conditions for third party access to installations on South Arne. The extension can thus help to ensure the future infrastructure for the benefit of future production also outside the permit area, which has been extended.

Source: Energistyrelsen / Maritime Denmark


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