Denmark to phase out oil and gas production by 2050

Denmark's parliament has voted to phase out North Sea oil and gas production by 2050.

The plan includes cancelling the country's eighth licensing round, which has attracted lacklustre interest since its launch in 2018, and all future rounds.

"It is incredibly important that we now have a broad majority behind the agreement. There is no longer any doubt about the possibilities and conditions in the North Sea," Danish climate and energy minister Dan Jorgensen said.

Denmark will continue to review two outstanding applications in the eighth round from UK-based Ardent Oil to ensure "stability", Jorgensen said. But any licences awarded will be subject to the 2050 cut-off date for oil and gas extraction. Total, the largest operator in Denmark's upstream sector, has already withdrawn from the round.

Denmark's decision to end North Sea production comes six months after parliament set a legally binding target to reduce greenhouse gas (GHG) emissions by 70pc by 2030.

Denmark began producing oil and gas in its sector of the North Sea in 1972. Its has 19 oil and gas fields, 15 of them operated by Total on behalf of the Danish Underground Consortium (Duc), three operated by the UK's Ineos and one by US firm Hess.

Latest figures from the Danish Energy Agency put Danish crude production at 71,500 b/d in October and gas output at 130.9mn ft³/d. Production has been constrained since the Tyra field and its satellites were shut down for a redevelopment project in September last year. The project is not expected to be completed until the second quarter of 2023, having been delayed by a year by the Covid-19 pandemic.

By Dafydd ab Iago