Total has completed its acquisition of Maersk Oil, first announced last August.
The transaction lifts Total’s 2P/2C reserves and resources by around 1 Bboe, and increases its production by roughly 160,000 boe/d in 2018 and by more than 200,000 boe/d early in the 2020s.
As a result, Total now claims to be the second-largest operator in the North Sea with an output of 500,000 boe/d by 2020, with a new stronghold in the Danish sector.
Patrick Pouyanné, the company’s chairman and CEO, said the acquisition “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.”
“We are committed to preserve and further develop Maersk Oil’s heritage by relying on the strong competencies of its teams,” he added. “Our regional hub for North Sea activities is now headquartered in Copenhagen. Moreover, we welcome a major new shareholder — A.P. Moller-Maersk — which will hold 3.70% of the group’s capital.”
Outside the North Sea, Totals gains interests in Algeria and the US Gulf of Mexico.
Under the terms agreed, A.P. Moller-Maersk will receive a consideration of $4.95 billion in Total shares, while Total will take on $2.5 billion of Maersk Oil’s debt.
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