Oil Acquisition Total is Second-Largest Oil Operator in North Sea

Editor: Ahlam Rais

The company was able to achieve this feat by recently closing its Maersk Oil acquisition that was signed last year. With this deal, Total is expected to possess an output of 500,000 boe/d by 2020.

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The acquisition of Maersk Oil allows the Total Group to reinforce its existing leading positions in the UK, Norway and Denmark.
The acquisition of Maersk Oil allows the Total Group to reinforce its existing leading positions in the UK, Norway and Denmark.
(Source: Deposit Photos)

Paris/France – Total announces the closing of the Maersk Oil acquisition signed on August 21, 2017. It brings to Total around 1 billion barrels of oil equivalent of 2P/2C reserves and resources, mainly in the Organisation for Economic Co-operation and Development (OECD) countries, and a production of about 160,000 barrels of oil equivalent per day (boe/d) in 2018, ramping up to more than 200,000 boe/d by the early 2020s.

The acquisition of Maersk Oil allows the Group to reinforce its existing leading positions in the UK and in Norway, as well as to enter Denmark, making Total the second-largest operator in the North Sea with an output of 500,000 boe/d by 2020.

The transaction also strengthens other growth areas of Total, in particular in Algeria and in the Gulf of Mexico in the United States. It is immediately accretive to both cashflow per share and earnings per share.

The effective date of the transaction is the March 8, 2018. Under the agreed terms, AP Moller–Maersk will receive a consideration of 4.95 billion dollars in Total shares (around 97.5 million shares based on average share price of the 20 business days prior the signing date of August 21, 2017) and Total will assume 2.5 billion dollars of Maersk Oil’s debt.

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