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France: Total Concludes Maersk Oil Acquisition

France: Total Concludes Maersk Oil Acquisition

Total concludes the Maersk Oil acquisition, bringing in around 1 billion barrels of oil equivalent of 2P/2C reserves and resources to Total, mainly in the OECD countries.

It will also bring a production of about 160,000 barrels of oil equivalent per day (boe/d) in 2018, which would increase to more than 200,000 boe/d by the early 2020s.

The Group’s existing leading positions in the U.K. and in Norway is reinforced by the acquisition of Maersk Oil. It also allows it to enter Denmark, making Total the second-largest operator in the North Sea with an output of 500,000 boe/d by 2020.

Patrick Pouyanné, Chairman and CEO of Total, remarked, “This major acquisition is a success on many levels. First, it illustrates our strategy to build on our strengths and grow our presence in Total’s core areas, like the North Sea, to strengthen our leadership there. Second, it brings high-quality and low-breakeven assets, enhancing our worldwide portfolio. Third, the strong overlap between Maersk Oil and the Group’s assets will generate more than $400 million of synergies per year.”

He also added that they are committed to preserve and further develop Maersk Oil’s heritage by relying on the strong competencies of its teams. Their regional hub for North Sea activities is now headquartered in Copenhagen. A major new shareholder — A.P. Moller-Maersk —will hold 3.70% of the Group’s capital.

Other growth areas of Total, particularly Algeria and the Gulf of Mexico in the United States are strengthened by the transaction and is immediately accretive to both cashflow per share and earnings per share. PWKD13032018

Last modified onMonday, 12 March 2018 23:26
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