Total to buy Maersk Oil

PARIS, August 21, 2017 – Total will purchase Maersk Oil, the E&P arm of A.P. Møller-Mærsk, for USD 7.45 billion, the French super-major announced on Monday.

Total will take on USD 2.5 billion of Maersk Oil’s debt and will swap 97.5 million of its own shares, worth USD 4.95 billion, the company said in a statement.

The deal, which is expected to close in Q1 of 2018, will increase the super-major’s reserves by 1 billion boe and will bring it assets that will produce 160,000 boe by next year, as well as synergies of USD 400 million per year.

“The combination of Maersk Oil’s North Western Europe businesses with our existing portfolio will position Total as the second operator in the North Sea with strong production profiles in UK, Norway and Denmark, thus increasing exposure to conventional assets in OECD countries,” said Patrick Pouyanne, chairman and CEO of Total. “Internationally, in the US Gulf of Mexico, Algeria, East Africa, Kazakhstan and Angola there is an excellent fit between Total and Maersk Oil’s businesses allowing for value accretion through commercial, operating and financial synergies.”

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