Total’s purchasing Maersk Oil not to affect oil & gas operations in Azerbaijan

Oil&Gas Materials 22 August 2017 15:11 (UTC +04:00)

Baku, Azerbaijan, August 22

By Leman Zeynalova – Trend:

The purchase of Maersk Oil (Danish A.P. Moller-Maersk) by France’s Total company for $7.45 billion will not affect the operations of the Danish company in Azerbaijan, a source in the Maersk central office told Trend.

Maersk Drilling (A.P. Moller-Maersk) is the operator of the semi-submersible drilling rig Maersk Explorer, which has been involved in the implementation of the project for the second stage of development of Azerbaijan’s Shah Deniz gas and condensate field.

Maersk Drilling is a separate company within the conglomerate AP Moller-Maersk, and the acquisition of Maersk Oil has nothing to do with the company or its operation in Azerbaijan, said the source.

The operation of the drilling rig will continue in normal mode in accordance with the contract with BP, operator for development of Shah Deniz field, added the source.

A.P. Moller - Maersk has signed an agreement to sell Maersk Oil to Total for $7.45 billion in a combined share and debt transaction.

A.P. Moller - Maersk will receive an enterprise value per 30 June 2017 of $7.45 billion paid by 97.5 million shares in Total S.A. with a value of $4.95 billion equal to approximately 3.76 percent of Total S.A. (post issuing shares to APMM).

In addition to the shares Total S.A. is assuming a short-term debt of $2.5 billion via debt push down from A.P. Moller - Maersk into Maersk Oil.

The agreement is subject to regulatory approval from relevant authorities, including the Danish Minister of Energy, Utilities and Climate and relevant competition authorities. Closing is expected to take place during first quarter, 2018. The purchase of Maersk Oil will enable Total to take over about 1 billion barrels of oil equivalent of 2P reserves, more than 80 percent of which are in the North Sea.


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