Maersk Oil Goes Underground, Danish Underground that is

Image: Maersk

(Dow Jones) Maersk Oil, the oil and gas arm of Danish conglomerate A.P. Moller-Maersk A/S (MAERSK-B.KO), Monday said the state-run oil and gas company Nordsofonden has joined the Danish Underground Consortium.

Maersk said Nordsofonden will take a 20% stake in the Danish Underground Consortium, or DUC, which operates 16 fields with a daily production of about 180,000 barrels of oil and 14 million cubic metres of gas.

The admission of the new partner leaves Maersk Oil with 31.2% while Royal Dutch Shell PLC (RDSA) now owns 36.8% and Chevron (CVX) 12.0% of DUC. Maersk Oil previously owned 39% of the partnership while Shell held 46% and Chevron 15%.

“From a 30-year perspective, I see a huge potential for increased production from both existing fields and new fields, and the new DUC group has a wide range of challenging production enhancing projects ahead,” Jakob Thomasen, chief executive of Maersk Oil said in a statement.

Nordsofonden enters the partnership in accordance with a sole concession extension agreement made in 2003 and Maersk Oil–which will remain operator of DUC–said the financial impact of Nordsofonden’s joining has already been absorbed by the company through other changes in terms and conditions introduced by the 2003 agreement.

At 0734 GMT A.P. Moller-Maersk shares traded 0.3% lower at 38,940 Danish Kroner ($6,434).

– Katarina Gustafsson, Dow Jones Newswires