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News // Oil and gas worldwide

France’s Total buying Denmark’s Maersk Oil for $7.5 billion

22 August 2017 , 10:09Neftegaz.RU583

The Danish oil and shipping giant Maersk has announced on August 21, 2017, that it has agreed to sell off its oil and gas assets to French oil company Total for $7.45 billion.

 

Total said the deal will position it as the №2 operator in the North Sea, which is the 7th-largest oil-and-gas producing region in the world.

Under the terms of the deal, Moller Maersk will get $4.95 billion in Total shares and Total will assume $2.5 billion of Maersk Oil’s debt.

 

«It was time for us to do what a real oil & gas company would do in a period such as this when prices are lower and costs are down. Either launch new projects or acquire new reserves at attractive prices,» said Total CEO Patrick Pouyanne.

 

The sale of Maersk Oil is part of Maersk's restructuring strategy, which will see it focus on its core transport and logistics arms.

Lower oil prices over the past few years also played their role in the company's plan to divest its oil arm.

 

The deal, which is subject to relevant regulatory approvals, is expected to be completed during the 1st quarter of 2018.

 

The Danish oil company has access to high-quality fields in the Norwegian and UK North Sea.

 

Maersk has a 8.44 % stake in the giant Johan Sverdrup project led by Norway’s Statoil which is expected to start pumping 440,000 barrels per day in 2019, rising to 660,000 bpd by 2022.

The company is currently developing the Culzean gas field which is expected to start production in 2019 and which could supply up to 5 % of Britain’s gas demand.

 

To read the article in Russian.

 

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