As part of the deal, which is subject to approval from regulatory and competition authorities, Total will assume decommission obligations of $2.9 million, AP Moller-Maersk said, reported American Shipper. The transaction is expected to close during the first quarter of 2018.
Total said the transaction will boost its production by 160,000 barrels a day in 2018 and strengthen its operations in the North Sea. The company expects the transaction to result in financial synergies of $400 million annually.
"The combination of Maersk Oil's northwestern Europe businesses with our existing portfolio will position Total as the second operator in the North Sea with strong production profiles in UK, Norway and Denmark," Total chairman and CEO Patrick Pouyanne was quoted as saying.
"Internationally, in the US Gulf of Mexico, Algeria, East Africa, Kazakhstan and Angola there is an excellent fit between Total and Maersk Oil's businesses allowing for value accretion through commercial, operating and financial synergies."
For AP Moller-Maersk, the move is part of its restructuring strategy, which involves it focusing more on transport and logistics"Maersk Oil is the first of the four energy companies of AP Moller-Maersk for which a future structural solution has now been identified. The solutions for Maersk Drilling, Maersk Supply Service and Maersk Tankers remain to be defined before the end of 2018," the conglomerate said.