The Danish Energy Agency (DEA) has approved the sale of Mærsk Oil & Gas, Mærsk's fully-owned exploration and production (E&P) subsidiary, to Total for US$7.45bn in a share and debt transaction. The DEA approved the transfer but also reminded that A.P. Moller-Mærsk assumes a secondary liability for the decommissioning of existing Danish offshore facilities corresponding to Mærsk Oil’s 31.2% interest in the Danish Underground Consortium (DUC), if Total is unable to cover the costs.
The transaction will add around 1 Gboe of 2P/2C reserves, 85% of which are in OECD countries (more than 80% in the North Sea) and 160 kboe/d of hydrocarbon production (mainly liquids) to Total's operations. More specifically, Mærsk Oil will bring the British gas field Culzean (49.99% Working Interest and operatorship), close to the Elgin-Franklin hub operated by Total, and its stake in the giant Johan Sverdrup oil development (8.44% Working Interest) in Norway will bolster Total’s production profile in these countries. The transaction will also add a new production hub with Maersk Oil’s operatorship and 31.2% ownership of the DUC producing assets in Denmark with net production in 2018 estimated at around 60 kboe/d.
Total is now the second largest operator in the north-western Europe offshore region: post completion, Total will operate over 500 kboe/d (gross) production in this region.