Total Acquires Maersk Oil & Gas for $7.45 Billion
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The Danish Energy Agency has approved the A.P. Møller – Mærsk’s proposed sale of its subsidiary Danish exploration and production company Maersk Oil & Gas (Maersk Oil) to global oil major Total for $7.45bn.
As per the deal signed in August 2017, Total will acquire Maersk Oil’s organization, portfolio, obligations and rights with minimal pre-conditions from Danish business conglomerate A.P. Møller – Maersk.
The DEA said in a statement: “The Danish Energy Agency’s approval of the transfer contains conditions, including that A.P. Moller -Maersk, as seller, assumes a secondary liability for the decommissioning of existing Danish offshore facilities corresponding to Maersk Oil’s 31.2 percent interest in the Danish Underground Consortium, should Total be unable to cover such costs.”
Under the terms of the agreement, A.P. Møller – Maersk will be entitled to $4.95bn worth shares of Total, which will also assume a debt of $2.5bn of Maersk Oil.
Total earlier said that acquisition strengthens its existing North Sea offshore producing business in UK and Norway in addition to making it the second largest operator in the North West Europe offshore region where it will operate more than 500kboe/d with the addition of Maersk Oil.
Total would also gain a new production hub by taking Maersk Oil’s operatorship and 31.2 percent ownership of the DUC producing assets in Denmark.
Besides, Maersk Oil has a major presence in the British and Norwegian sectors, with nine licenses in Norway, including an 8.44 percent ownership of Johan Sverdrup.
The divestment is part of A.P. Moller – Maersk’s strategy to separate out its oil and oil related activities in a bid to create an integrated transport and logistics company.
A.P. Moller - Maersk said that Maersk Oil is the first of the four energy companies identified for future structural solution.
The firm plans to announce solutions for Maersk Drilling, Maersk Supply Service and Maersk Tankers before the end of 2018.
Source: Energy Business Review
To stop by Total’s website, CLICK HERE
To stop by Maersk’s website, CLICK HERE
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