Maersk Sells Oil and Gas Division to Total

Syndicate Post image

Danish shipping company Moller-Maersk has agreed to sell its oil and gas division, Maersk Oil, to Total for $7.45bn in a combined share and debt transaction. This agreement is the latest sign of consolidation in the oil-and-gas industry, which is only now coming to grips with the painful downturn.

"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 Patrick Pouyanne, Total chairman and chief executive.

Maersk will receive 97.5 million shares in Total with a value of $4.95 billion equal to approx. Not a bad deal for both sides, taking into account the prolonged downturn in the gas and oil industry.

Total said the deal gives it around 1bn barrels of oil equivalent 2P/2C reserves to Total, 85% of which are in OECD countries (80% in the North Sea). In other words, the deal will make the French oil company northwest Europe's second-largest offshore operator.

At 0900 BST, Moller-Maersk shares were up 3.7% to DKK13,260, while Total shares were down 0.5% to €42.34.

Total has also offered the possibility of a seat on its Board of Directors to A.P. Moller Holding A/S, main shareholder of A.P. Moller-Maersk.

"In determining the best future ownership structure for Maersk Oil, it has been imperative for us that the capabilities and assets created in Maersk Oil continue to be developed, and that long-term investments are upheld, especially in the Danish part of the North Sea", said Søren Skou, the CEO of Maersk.

Related:

Comments


Other news