Maersk gains approval for sale of Maersk Oil to Total
- Business & Finance
The Danish Energy Agency has issued its approval of A.P. Moller – Maersk’s sale of Maersk Oil to global oil major Total, including the conditions for such a transfer.
As part of the agreement, Total will take over Maersk Oil’s organization, portfolio, obligations and rights with minimal pre-conditions.
The Danish Energy Agency’s approval of the transfer contains conditions, including that A.P. Moller – Maersk, as seller, assumes a secondary liability for the decommissioning of existing Danish offshore facilities corresponding to Maersk Oil’s 31.2 % interest in the Danish Underground Consortium, should Total be unable to cover such costs.
The agreement to sell Maersk Oil to Total was announced on August 21, 2017, subject to regulatory approval from relevant authorities. The value of the deal was estimated at $7.45 billion.
Once completed, the deal will make Total the second largest operator in the NW Europe offshore region which is the 7th largest oil and gas producing region globally. Post completion, Total will operate over 500 kboe/d (gross) production in this region.
The closing of the transaction is expected to take place during the first quarter of 2018.