losangelesnewstoday.com
losangelesnewstoday.com October 19, 2017


Total Buys Maersk Oil: Global Energy Growth With M&A

22 August 2017, 12:49 | Maryann Sutton

Painting honouring Heather Heyer who was killed during the Charlottesville attacks

Painting honouring Heather Heyer who was killed during the Charlottesville attacks

Mærsk A/S (APMM) has entered into an agreement to sell Mærsk Olie og Gas A/S ("Maersk Oil") to Total S.A. for Dollars 7.45bn in a combined share and debt transaction, the company announces in its press release.

Denmark will become a regional hub for all Total's operations in Denmark, Norway and the Netherlands, based on Maersk Oil's capabilities and strong position in the North Sea region. Total chose not to pursue shale oil in the USA, one of the fastest growing areas this year, because assets there are expensive, he said.

Total expects its biggest oil deal since it acquired Elf in 2000 to generate financial synergies of more than $400 million per year, in particular by combining assets in the North Sea.

AP Moller Maersk shares were up 3.7 percent by 0900 GMT while Total shares dipped 0.7 percent. The French company is coming off a strong quarter, with adjusted net income growing by 13 percent from previous year to $2.5 billion.

Total said on Monday (21 August), that it will transfer 97.5 million shares with a value of $4.95bn to Maersk, and will also assume a short term debt of $2.5bn.

Total said the acquisition would bolster its positions in the Gulf of Mexico, Algeria, Kenya and Kazakhstan. Norway's Statoil (and Total for that matter) made investments in Brazil's sub-salt deepwater oil fields.

Chinese troops hurl stones at Indian Army in Ladakh region
The Chinese resorted to stone pelting when the Indian side blocked two attempts made by the People's Liberation Army. After being stopped, the Chinese side began pelting stones, to which the Indian side responded in the same fashion.

The combination with Maersk Oil gives Total about 1 billion barrels of oil equivalent of proven and probable reserves, about 80 percent of which are in the North Sea, according to the statement.

Total is also taking over short-term debt valued at Dollars 2.5 billion and closure obligations worth USD 2.9 billion.

The deal is continent on necessary approvals and is expected finalized in the first quarter 2018.

"In the United Kingdom in particular, we have two operations of similar size". Maerk has operated Al Shaheen since 1992. The acquisition improves Total's near-term growth outlook - it provides Total with an immediate 6% production increase and strengthen near-term growth.

"It will further shift Total's weighting towards OECD regions, a core strategic driver for the company as it looks to balance the portfolio away from areas of high above ground risk", said a WoodMac director Valentina Kretzschmar.

Total will gain 160,000 boe/d in production, mainly liquids, production in 2018, rising to more than 200,000 boe/d by the early 2020s.



Other News

Trending Now

Hotel security chief molests woman employee, tries to go physical
On her husband's advice, she filed an FIR or First Information report with the airport police station on August 1. The police have also recovered three sets of footage which have been sent for forensic examination.

Sinking of homemade sub carrying Kim Wall a 'deliberate act,' police say
The boat left on Thursday evening at around 19 from Refshaleøen, where some of Kim Wall's friends were present to wave goodbye. The stricken vessel, the Nautilus , has been raised but no body was found and the search for Ms Wall goes on.

Finally Police Identify Man Who Killed 3 Child in Maryland
Antonio Williams , 25, was taken into custody by local police on Friday night after reportedly confessing to the killings. Williams has been charged with three counts of first-degree murder and three counts of second-degree murder", Capt.

Butte's July jobless rate up
Only Oregon with a 2.9 percent increase had a bigger gain, the bureau said. "Year-over we have been gaining jobs", Weaver said. Construction gained 1,700 jobs for the month and is up 13,900 jobs for the year at an all-time high employment.

Xbox One X Day One Edition Surfaced
The limited edition featured a "DAY ONE 2013" inscriptions on the controller and a unique achievement. The 4K edition of the Xbox One is will be available on 7th November, with a hefty £450 price tag.

Sharapova gets invite for Grand Slam return
On Tuesday, the Wall Street Journal reported that Maria Sharapova has received a wild card entry into the U.S. Upon her comeback she was denied a wild card for both the main draw and qualifying into the French Open .

Erdogan warns German foreign minister to 'know your limits'
Germany will hold a general election on 24 September, and about one million ethnic Turks living in Germany can vote. Merkel said she had spoken to Spanish Prime Minister Mariano Rajoy to extend Germany's condolences.

Brazil retail sales jump in June, boosted by cheaper credit
The strong auto sales came despite industry reports which showed vehicle and truck sales fell six per cent from July 2016. Faced with a huge inventory of unsold cars, auto dealerships are resorting to hefty discounts to attract buyers.

Referee and judges confirmed for Floyd Mayweather vs Conor McGregor
The Irish UFC star has enjoyed a rapid rise to the top of his game and now stepped up and across for an assault on boxing. "Paulie was obviously lying about everything he said about the sparring match, so I released it".

Deepening rift, U.S. sharply curtails visa services in Russian Federation
Operations will resume September 1 on a "greatly reduced scale", but interviews will be conducted only at the embassy and not at consulates in St.