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Total beefs up its North Sea portfolio with the US$7.45 billion acquisition of Maersk Oil
Valentina Kretzschmar, Greig Aitken and Max Petrov discuss Total’s acquisition of Maersk Oil.
Total has announced it will acquire Danish company Maersk Oil for US$7.45 billion in the biggest North Sea-weighted deal since the Statoil / Norsk Hydro merger in 2006. The move comes as part of Total's shift toward OECD regions and away from areas of high above-ground risk.
Dr Valentina Kretzschmar added: “There are a number of strategic drivers at play here. The acquisition improves Total’s near-term growth outlook — it provides Total with an immediate 6% production increase and strengthens near-term growth."
Through the acquisition, Total gains access to the prized Johan Sverdrup discovery (8.44%) and the UK's largest gas development, Culzean (49.99%). Both are currently under development and are expected to come on stream towards 2020.
Total also strengthens its platform for growth in the Middle East and Africa. “Total is acquiring a deep specialist in unlocking complex reservoirs and boosting recovery factors through enhanced oil recovery techniques,” Dr Kretzschmar said. “Undoubtedly, there will be synergies across technology and mature reservoir expertise, in particular in Qatar and Iran."
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Europe upstream week in brief: Major coup for Total in US$7.45 billion Maersk Oil deal