French gas and oil giant Total has acquired Maersk Oil & Gas, the exploration and production unit of A.P. Møller – Mærsk for $7.45 billion.
Total said that under the agreed terms, A.P. Møller – Maersk will receive a consideration of $4.95 billion in Total shares and Total will assume $2.5 billion of Maersk Oil’s debt.
The transaction is expected to close in the first quarter of 2018 following the acquisition of relevant regulatory approvals. Boards of both companies have both approved the acquisition.
The combination with Maersk Oil will enable Total to overlap upstream businesses globally enhancing its competitiveness and value in many core areas, Total said.
The company acquired around 1 billion barrels of oil equivalent (boe) of 2P/2C reserves, 85 percent of which are OECD countries, 160 kboe/day od mainly liquids production in 2018which is expected to grow to over 200 kboe/d by the early 2020’s.
Commenting on the transaction, Patrick Pouyanne , Total’s chairman and CEO said the combination of Maersk Oil’s North Western Europe businesses with its existing portfolio will position Total as the second operator in the North Sea with strong production profiles in UK, Norway and Denmark.
He added the acquisition is in line with the company’s decision to take advantage of the current market conditions.