Oil & Gas

Total acquires Maersk Oil for $7.45 billion

By Staff Energy & Commerce

French Total announced the acquisition of 100% of the equity of the E&P company Maersk Oil & Gas, a wholly owned subsidiary of A.P. Møller – Mærsk A/S. The purchase was made considering USD $4.95 billion in Total shares (equivalent to 97.5 million of shares, 3.75% of the enlarged share capital of Total), and it will assume USD $2.5 billion of Maersk Oil’s debt.

The transaction will bring Total as benefits:

  • Around 1 billion boe of 2P/2C reserves, 85% of which are in OECD countries (more than 80% in the North Sea), contributing to Total’s continuous balancing of country risks of its portfolio to enhance shareholder value.
  • The addition of 160 kboe/d of mainly liquids production in 2018, acquired at an average price of 46 k$/boepd, offering high margins with an estimated free cash flow break-even of less than $30 per barrel and growing to more than 200 kboe/d by the early 2020’s further strengthening Total’s leading production growth outlook.
  • Total expects to generate operational, commercial and financial synergies of more than $400 million per year, in particular by the combination of assets of Total and Maersk Oil in North Sea, an area of excellence for both companies
  • The transaction is immediately accretive to both earnings and cash flow per share underpinning Total’s dividend profile.

You may also be interested in: Results of the option to receive the 2017 second interim dividend in shares

Acquisition transforms Total’s North West Europe outlook. This transaction will make Total the second largest operator in the NW Europe offshore region; which is the 7th largest oil and gas producing region globally. Post completion, Total will operate over 500 kboe/d (gross) production in this region.

The transaction strengthens Total’s existing North Sea offshore producing business in UK and Norway. Other regional businesses will be strengthened as well; due clear complementary positions between both companies in the Gulf of Mexico, Argelia, Kenya, Est Africa, Angola, Brazil, Middle-East and North Africa.

Related posts

Piso parejo para trabajar en México: Shell

Efrain Mariano

Aprueban a Jaguar E&P periodo de exploración

Efrain Mariano

Precios del petróleo rebotan 2%, se relajan temores de nueva crisis financiera

Efrain Mariano

Leave a Comment