{"id":6212,"date":"2017-08-21T09:56:18","date_gmt":"2017-08-21T09:56:18","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=6212"},"modified":"2017-08-21T09:56:18","modified_gmt":"2017-08-21T09:56:18","slug":"total-gets-stake-turkana-following-acquisition-maersk-oil","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/total-gets-stake-turkana-following-acquisition-maersk-oil\/","title":{"rendered":"Total Gets Stake in Turkana Following acquisition of Maersk Oil"},"content":{"rendered":"

Total<\/a>\u00a0has announced that the Boards of\u00a0Total\u00a0and\u00a0A.P. M\u00f8ller \u2013 M\u00e6rsk have both approved the acquisition of 100% of the equity of the E&P company\u00a0Maersk Oil & Gas, a wholly owned subsidiary of A.P. M\u00f8ller \u2013 M\u00e6rsk, by Total in a share and debt transaction.<\/p>\n

This transaction gives Total a stake in the Kenyan oil reserves in Turkana<\/a> estimated at 750 million barrels where Maersk Oil has 25 percent ownership in the Kenyan blocks 10BA, 10BB and 13T alongside Tullow Oil and Africa Oil.\u00a0 The transaction also gives Total the first onshore acreage in Kenya to compliment its five offshore acreage in blocks L5, L7, L11A,L11B and L12 where it has 40 percent stake. Pre FEED work is underway for the South Lokichar license area, and an Early Oil Production Scheme<\/a> is underway with first oil expected in 2017.<\/p>\n

Other than Kenya Maersk Oil also has interest in two blocks in Ethiopia<\/a> namely the South Omo (15% equity) and Rift Basin Blocks (25% equity) alongside Africa Oil, Delonex and Tullow Oil.<\/p>\n

Overall the acquisition gives Total a say in two major oil regions in East Africa as the company also has an important stake in Uganda where another 6.5 billion barrels have been discovered in the Albertine Graben. The company was also instrumental in ensuring the East African crude oil pipeline went through Tanzania leaving Kenya to build its own pipeline. It will be thus interesting to see how Total’s new equity could change its perception towards Kenya.<\/p>\n

Transaction Details<\/strong><\/p>\n

Under the agreed terms, A.P. M\u00f8ller \u2013 Maersk will receive a consideration of $4.95 billion in Total shares and Total will assume $2.5 billion of Maersk Oil\u2019s debt. Total will issue to A.P. M\u00f8ller \u2013 Maersk, 97.5 million of shares, based on the average Total share price on the 20 business days prior to August, 21 (signing date) which will represent 3.75% of the enlarged share capital of Total. \u00a0Underpinning this \u00a0share based partnersip, subject to Total shareholders\u2019 approval, Total has also offered the possibility of a seat on its Board of Directors to A.P. M\u00f8ller Holding, main shareholder of A.P. M\u00f8ller \u2013 M\u00e6rsk.<\/p>\n

The proposed transaction is subject to the applicable legally required consultation and notification processes for employee representatives and to approvals by the relevant regulatory authorities. The transaction is expected to close in first quarter 2018 and has an effective date of 1st July 2017.<\/p>\n

The combination with Maersk Oil offers Total an exceptional overlap of upstream businesses globally which will enhance Total\u2019s competitiveness and value in many core areas, in particular through some high quality growing assets and through the delivery of synergies. Specifically the transaction will bring the following benefits to Total:<\/p>\n