The Danish Energy Agency has approved Maersk Group’s sale of its oil business, Maersk Oil, to global oil major Total S.A.
As part of the agreement, announced in August last year, Total will take over Maersk Oil’s organization, portfolio, obligations and rights with minimal pre-conditions.
The sale will take the form of a USD 7.45 billion worth combined share and debt transaction.
The move is part of Maersk Group’s separation of the energy businesses in line with the decision to focus its activities on transport and logistics.
For the transformation to be completed, Maersk is yet to find solutions for Maersk Drilling and Maersk Supply Service, which are expected to be defined before the end of 2018.
The transformation of Maersk Group from a conglomerate to an integrated global container logistics company is expected to take between three to five years.
“The Danish Energy Agency’s approval of the transfer contains conditions, including that A.P. Moller – Maersk, as seller, assumes a secondary liability for the decommissioning of existing Danish offshore facilities corresponding to Maersk Oil’s 31.2 pct interest in the Danish Underground Consortium, should Total be unable to cover such costs,” Maersk said in a release.
The decision will not have any impact on the group’s previous financial guidance for the financial year 2018.
The closing of the transaction is expected to take place during the first quarter of 2018.