Total Announces Plans to Transform its Organization in Esbjerg
Monday 24 June 2019
Total E&P Danmark announced its plans to restructure its Danish oil and gas operations centered in Esbjerg. The reorganization will introduce a simpler and more focused set-up building on the wider Total Group’s experience and expertise with an aim to improve our competitiveness in the Danish North Sea.
The decision to transform the organization reflects a temporary reduction of Total’s Danish North Sea production by 40% due to the major redevelopment of the Tyra platforms. Production from the Tyra fields will shut-in end 2019, and when it’s back on stream in 2022 the new redeveloped Tyra will continue to play an important role as key Danish infrastructure processing more than 90% of the natural gas from the Danish North Sea.
Patrick Gilly, Managing Director for Total’s Danish North Sea operations, says:
“We see an interesting potential in Denmark, and we want to become more competitive to continue unlocking the potential of the increasingly challenging Danish subsurface in a sustainable manner. The reorganization we announced today will transform the way we work, so that we can produce more efficiently and better utilize the skills and innovation power of our talented employees – while continuing our focus on safety and environmental impact,” and he continues;
“Unfortunately, the changes mean that a number of valued colleagues will leave us. During this difficult process, we will do our best to support those impacted. We will seek to reduce compulsory redundancies by offering our employees alternative positions in the Total Group”.
There are currently around 1,500 people working in Total E&P Danmark based in Esbjerg, and up to 200 employees and a number of contractors are expected to leave the organization as a result of the transformation.
The restructuring in Esbjerg is subject to statutory consultation, according to Danish labour law. The plans were announced today to Total employees based in Esbjerg as well as to those offshore on the installations in the Danish North Sea.
Total’s organization in Copenhagen, which provides the North Sea & Russia region with leadership, technology, and support functions as well as marketing and services for the Nordics, will not be impacted. Around 360 employees are working in the Copenhagen office.
About Total Exploration & Production in Denmark
Total is the largest oil and gas operator in Denmark. The country boasts a proud oil and gas industry which extends back more than half a century. Today Denmark’s upstream industry is gearing up for a new chapter with the Total-led full redevelopment of the Tyra Field and its associated gas infrastructure which will support energy security and support the energy transition in Denmark and Europe.
Oil was first discovered in the Danish sector of the North Sea in 1967, with commercial production beginning in 1972. In 2018 operated production in Denmark was around 97,000 barrels of oil and 334 million standard cubic feet of gas per day.
Total’s presence in Denmark was cemented with the acquisition of Maersk Oil and takeover of the operatorship of the Danish Underground Consortium (DUC). This consortium is responsible for 85% of the oil and 97% of the gas production in Denmark, making an important contribution to Denmark’s economy, energy supply and employment.