TapForMobile

French energy giant snaps up Maersk Oil for $7.45b


The North Sea region is among the largest oil and gas producing zones in the world. It will issue 97.5 million Total shares to A.P. Moller - Maersk, equal to a 3.75 per cent stake in the company.

Brent crude, the worldwide oil price benchmark that sets prices in the North Sea region, was down 1.1 per cent to $52.13 a barrel, as traders took profits following a rally at the end of last week. Total will also get Maersk's 8.44% stake in the giant Johan Sverdrup oil development offshore Norway and become the second largest independent in Algeria through Maersk's oil interests there. Though the number of European deals so far this year stands at roughly half the level of those completed in 2016, their value has reached $16.8 billion, compared with $5.3 billion in all of 2016, according to Wood Mackenzie. Altogether, the Maersk Group has received shares for Dollars 4.95 billion in the French oil company, corresponding to a 3.76 percent ownership share.

Total will gain 160,000 boe/d in production, mainly liquids, production in 2018, rising to more than 200,000 boe/d by the early 2020s. "This deal demonstrates Total's purchasing power and free cash flow", said Mr Brenac.

Alongside Maersk Oil's UK North Sea assets, Total will also take over its Danish and Norwegian operations. "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 & chemical businesses".


Total is also taking over short-term debt valued at Dollars 2.5 billion and closure obligations worth USD 2.9 billion. The cost savings will be seen "in particular by the combination of assets of Total and Maersk Oil in North Sea".

The deal may yet be the Maersk's biggest single transaction yet in the first steps to break itself up. Cost synergies should add value, with the North Sea a key area of overlap.

Commenting on the transaction, Patrick Pouyanne, Chairman and CEO said, “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 Totals core regions.

Maersk recently boosted its container business by buying Hamburg Sud, a German rival with a strong position in Latin America, for $4bn (£3.1bn).

Related Articles

  • Wallabies outclassed in Bledisloe Cup opener

    Wallabies outclassed in Bledisloe Cup opener

    Damian McKenzie and Ben Smith scored tries early in the second half as this competition opener turned into a complete mauling. Sonny Bill Williams crashed over in the 34th, then Crotty scored his second in the last minute of the first half.
    Death toll up to 450 in Sierra Leone mudslides

    Death toll up to 450 in Sierra Leone mudslides

    He presented two cheques of USD$100,000 and USD$200,000 each towards food and medical care for victims of the August 14 disaster. Major floods in the rainy season between May and November are an annual occurrence in the West African nation, said Kamara.
    Huawei Mate 10 Concept Renders Spotted Online along with Specs

    Huawei Mate 10 Concept Renders Spotted Online along with Specs

    The screen, by the way, developed in Japan forces Japan Display, and its functionality includes the ability to be turned on 24/7. Huawei's Mate 9 was a great phone with a standout screen, but if we had one criticism it would be the somewhat boring design.
  • Trump Assassination Post Puts Defiant State Senator On Path For Removal

    Trump Assassination Post Puts Defiant State Senator On Path For Removal

    It includes a brief statement from Chappelle-Nadal that says her comments could have been reframed and call on her not to resign. The comment was deleted a short while later, but not before KMOX's Mark Reardon took a screenshot and posted it to Twitter .
    Unsettled weather this weekend as tail-end of hurricane hits

    Unsettled weather this weekend as tail-end of hurricane hits

    While Hurricane Gert moves northeastward in the open Atlantic, 3 tropical disturbances are lined up in the eastern Atlantic. Most intensity computer models have Invest 92L reaching at least tropical storm strength by Sunday as Tropical Storm Irma.
    Target Announces Bid To Buy Grand Junction

    Target Announces Bid To Buy Grand Junction

    He said the planned acquisition of Grand Junction would not change Target's deal with Instacart. Grand Junction's 13 employees will become Target workers after the deal closes, Target said.
  • Suspect in Florida cop killing ID'd as former US Marine

    Suspect in Florida cop killing ID'd as former US Marine

    In Pennsylvania, two state troopers were shot and a suspect killed outside a small-town store south of Pittsburgh on Friday night. The man opened fire through the door, then exited and exchanged gunfire with the officers, wounding two of them, Bruno said.
    Nifty breaches 10000 mark, Sensex at new high on fund inflows

    Nifty breaches 10000 mark, Sensex at new high on fund inflows

    While IT, technology, PSU indices all firmed up, selling pressure pushed down rate-sensitive stocks such as auto and banking. Experts also believe that one of the reasons for the fall could also have been based on global cues.
    Oil slips on strong dollar, OPEC and China weigh

    Oil slips on strong dollar, OPEC and China weigh

    Even so, Citigroup Inc.'s Ed Morse says shale will win over OPEC on oil, as US drillers can survive due to hedging. US West Texas Intermediate (WTI) crude futures were at $47.71 a barrel, up 16 cents, or 0.3 per cent.
  • The AP Top 25 Poll

    The AP Top 25 Poll

    No. 12 Auburn will open the season against Georgia Southern on September 2 at 6:30 p.m. central time at Jordan-Hare Stadium. Alabama is No. 1 in the preseason Top 25, the first program in 12 years to take the top spot two years in a row.
    US, Japan step up defense cooperation to counter N Korea

    US, Japan step up defense cooperation to counter N Korea

    He said that the path of provocations and threats chosen by North Korea was not in the best interests of any nation. Tillerson said the United States wanted dialogue with Pyongyang , but only if it were meaningful.
    Jayalalithaa's niece questions Palaniswami's decision to convert Poes Garden residence into memorial

    Jayalalithaa's niece questions Palaniswami's decision to convert Poes Garden residence into memorial

    Following the announcement, Mafoi Pandiarajan, a senior leader in the OPS faction tweeted welcoming the EPS government's move. He alleged that there was a quarrel at Jayalalithaa's Poes Garden home during which she was "pushed down" and collapsed.

Comments