Total said its purchase of Maersk Oil will position it as the No. 2 operator in the North Sea, which is the seventh-largest oil-and-gas producing region in the world.
Total plans for Maersk oil unit is clear, the French company stated that an acquisition of Maersk Oil will bolster its production by 160,000 barrels a day in 2018. Alongside Maersk Oil's UK North Sea assets, Total will also take over its Danish and Norwegian...
EOR is a technique that is widely used to maximise production, with the Abu Dhabi National Oil Company looking for its partners to use EOR techniques to help reach its target of 3.5 million barrels per day by the end of next year. 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. The French company, which will also assume some $2.5 billion worth of Maersk Oil debt, said the deal underpins its dividend profile.
In the deal, Total will give Maersk an estimated $4.95 billion in shares.
Patrick Pouyanne, chairman and chief executive of Total, said: "This transaction delivers an exceptional opportunity for Total to acquire a company with high quality assets which are an excellent fit with many of Total's core regions".
Pouyanne said that Total had proposed a deal to Maersk as an alternative to floating the business.
Minneapolis To Submit Bid For 2026 World Cup
Each venue included in the request has to have at least 40,000 seats for the group-stage matches, and U.S. Bank Stadium is no stranger to hosting worldwide soccer matches.
Total's shares fell modestly on Monday morning, with stocks trading down about 0.2%.
"Investors should, however, think of these as high-margin low-priced barrels" that will recoup costs even if the price of oil falls to $30 per barrel from its current level around $50.
Total is also taking over short-term debt valued at Dollars 2.5 billion and closure obligations worth USD 2.9 billion. Maersk shares were up around 3.4%.
The interim results from Danish shipping giant A.P. Moller-Maersk Line indicate a welcome recovery for container lines, but challenging times for shippers, the Load Star reported.
The takeover of Maersk Oil requires Total employee representatives' shareholders' and regulatory approval.
"This may not be the final word from Total", he said. The deal is already approved by both boards and expected to close in 1Q 2018 and have an effective date of July 1 2017.