Following through on earlier promises to break up the energy and transportation giant, Danish conglomerate A.P. Moeller-Maersk agreed to sell its oil and gas assets to French giant Total for $5 billion in shares. Maersk will own approximately 4% of Total after the deal closes. Total will also assume $2.5 billion of Maersk’s debt.
The assets that Total is getting are heavily concentrated in the North Sea. The oil major, which produces about 2.5 million barrels of oil equivalent per day, projected that its production could reach 3 million barrels by 2019 after the acquisition. By comparison, oil giant Exxon Mobil produces 5.3 million barrels of oil equivalent each day.
Assuming the deal closes, Maersk will then turn its attention to divesting itself of its other energy businesses which include oil and gas rigs, oil tankers, and support ships for offshore oil exploration. The businesses Maersk will still own will leave it as one of the most important logistics and supply chain companies in the world, with a leading position in container shipping as well as servicing and owning port locations throughout the world.
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