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Total acquires Maersk Oil in US$7.45 billion deal

Total acquires Maersk Oil in US$7.45 billion deal

22 August 2017 Europe, Featured, Offshore 0

Total has acquired Maersk Oil in a deal worth US$7.45 billion, making it the second largest operator in the North Sea.

Under the terms of the agreement – a share and debt transaction – Maersk will receive a consideration of US$4.95 billion in Total shares and Total will assume US$2.5 billion of Maersk Oil’s debt.

The transaction will make Total the second largest operator offshore northwest Europe and strengthens the company’s offshore producing business in the UK and Norway.

It will also consolidate Total’s presence in the Gulf of Mexico, US, with Maersk Oil’s interest in the Jack development in the Wilcox formation.

The transaction is subject to approvals by the relevant regulatory authorities, and is expected to be closed in first quarter 2018 and has an effective date of 1 July 2017.

“This transaction delivers an exceptional opportunity for Total to acquire, via an equity transaction, a company with high quality assets which are an excellent fit with many of Total’s core regions,” said Total Chairman and CEO Patrick Pouyanne.

“The combination of Maersk Oil’s North Western Europe businesses with our existing portfolio will position Total as the second operator in the North Sea with strong production profiles in UK, Norway and Denmark, thus increasing exposure to conventional assets in OECD countries.

“Internationally, in the US Gulf of Mexico, Algeria, East Africa, Kazakhstan and Angola there is an excellent fit between Total and Maersk Oil’s businesses allowing for value accretion through commercial, operating and financial synergies.

“We are also very pleased that we will have a new anchor point in Denmark which will host our North Sea Business Unit and supervise our operations in Denmark, Norway and the Netherlands.

“We intend to build on the strong operational and technical competencies of the Maersk Oil teams in the same way we managed to do it in Belgium with the teams of Petrofina in the refining and chemical businesses,” said Mr Pouyanne.

For more information visit the Total website.

If you have company news you would like featured in Pipelines International contact Managing Editor Nick Lovering at nlovering@gs-press.com.au

Images supplied by Total

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