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$7.5b of Maersk Oil Acquisition Finalized

$7.5b of Maersk Oil Acquisition Finalized$7.5b of Maersk Oil Acquisition Finalized

Total announced on Thursday the closing of the $7.5-billion acquisition of Denmark’s Maersk Oil that adds 1 billion barrels of oil equivalent reserves and resources to the French oil major’s portfolio and makes it the second-largest operator in the North Sea, Oil Price reported. Under the terms of the share and debt transaction announced in August 2017 and effective as of Thursday, Total will pay the seller—A.P. Moller-Maersk—$4.95 billion in Total shares, or 97.5 million shares, and will assume $2.5 billion of Maersk Oil’s debt. The deal is the biggest North Sea-weighted deal since 2006, energy consultancy Wood Mackenzie said. The acquisition boosts Total’s presence in the UK and allows it to enter Denmark, making the French company the second-largest operator in the North Sea with production of 500,000 boe/d by 2020, behind Norway’s Statoil. Maersk Oil will bring to Total around 160,000 boe/d production this year, ramping up to more than 200,000 boe/d by the early 2020s.  

 

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