Maersk Oil

Maersk Oil, formally known as Mærsk Olie og Gas A/S, was a Danish oil and natural-gas exploration and production company associated with the A.P. Møller–Mærsk Group. It was created in 1962 after the Maersk Group received a concession to explore for and produce hydrocarbons in Denmark’s sector of the North Sea. The company subsequently became one of the principal operators in the Danish offshore petroleum industry and expanded its activities beyond Denmark. A central phase of Maersk Oil’s development followed its assumption of operatorship of fields belonging to the Dansk Undergrunds Consortium in 1986. This strengthened its role in the Danish North Sea and gave the company a substantial operating base in mature offshore fields. Over time, the business combined exploration, field development, production operations and participation in international upstream projects. Its producing portfolio included assets in Denmark, the United Kingdom, Qatar, Kazakhstan, the United States Gulf of Mexico, Algeria and Brazil. Exploration interests also extended to Angola, Norway, Greenland, the Kurdistan Region of Iraq and other producing or prospective jurisdictions. The company’s operations were focused on upstream oil and gas rather than refining, fuels retailing or broad energy distribution. Its output comprised crude oil and natural gas, and its technical work involved offshore development, reservoir management and production from fields with differing geological and operational conditions. At its largest reported operating scale, Maersk Oil had maximum operated production of approximately 550,000 barrels of oil equivalent per day, according to the company’s reference profile. One important late-period development was the Culzean high-pressure, high-temperature gas field in the United Kingdom’s North Sea. In August 2015, the UK Oil and Gas Authority approved development by a consortium led by Maersk Oil, with JX Nippon and BP as partners. The project was expected to require approximately £3 billion of investment and was projected to produce a material share of the United Kingdom’s gas demand when it reached peak production. Culzean demonstrated Maersk Oil’s continued participation in technically demanding offshore developments shortly before the company changed ownership. Maersk Oil ceased to operate as an independent Maersk-branded oil and gas company after A.P. Møller–Mærsk agreed in August 2017 to sell it to Total, now TotalEnergies, in a transaction valued at US$7.45 billion including shares and assumed debt. Regulatory and competition approvals were required, and the transaction closed on 8 March 2018. Maersk Oil was then absorbed into Total’s upstream organization, with its Danish business subsequently operating under Total-related corporate identities. The acquisition ended Maersk Oil’s independent corporate existence while transferring its assets, employees and operations into Total’s global exploration and production portfolio.

Maersk Oil was established in 1962 after the Maersk Group received a concession covering oil and gas exploration and production in the Danish sector of the North Sea. Its origins were therefore closely tied to Denmark’s development of an offshore petroleum industry and to the broader diversification of the A.P. Møller–Mærsk Group. The company’s most important early operating milestone came in 1986, when Maersk Oil took over operatorship of fields belonging to the Dansk Undergrunds Consortium in the Danish North Sea. This expanded its operational responsibility and established the company as a significant domestic upstream operator. Its activities included exploration, development and production of both crude oil and natural gas. Maersk Oil later built an international portfolio. Production was associated with Denmark, the United Kingdom, Qatar, Kazakhstan, the United States Gulf of Mexico, Algeria and Brazil, while exploration activity was also reported in Angola, Norway, Greenland and the Kurdistan Region of Iraq. The company’s internationalization gave it exposure to offshore and onshore petroleum projects across several regulatory and geological environments, although the Danish North Sea remained central to its identity. During the 2010s, Maersk Oil participated in the development of the Culzean field in the United Kingdom’s North Sea. The field was characterized by high pressure and high temperature, and development was approved in August 2015 by the UK Oil and Gas Authority. Maersk Oil led the consortium, alongside JX Nippon and BP, and the partners were expected to invest roughly £3 billion. Forecasts at the time indicated that the field could supply around 5 percent of the United Kingdom’s gas requirements at peak production. The company’s independent history ended as part of a strategic restructuring of the Maersk Group. On 21 August 2017, A.P. Møller–Mærsk announced an agreement to sell Maersk Oil to Total for US$7.45 billion in a transaction combining shares and debt. Completion depended on regulatory and competition approvals. The transaction closed on 8 March 2018, when Maersk Oil became part of Total. Its operations and assets were subsequently incorporated into Total’s upstream organization, and the Maersk Oil corporate brand ceased to function as an independent company.

• 2018

  Acquisition completion and integration into Total

  [1]Maersk Oilen.wikipedia.org

  The transaction closed on 8 March 2018, bringing Maersk Oil into Total and ending its independent corporate existence.

• 2017

  Agreement to sell Maersk Oil to Total

  [1]Maersk Oilen.wikipedia.org

  A.P. Møller–Mærsk announced the sale of Maersk Oil to Total in a combined share and debt transaction valued at US$7.45 billion.

• 2015

  Culzean development approval

  [1]Maersk Oilen.wikipedia.org

  The UK Oil and Gas Authority approved development of the Culzean field by a consortium headed by Maersk Oil, JX Nippon and BP.

• 1986

  Assumption of Dansk Undergrunds Consortium field operations

  [1]Maersk Oilen.wikipedia.org

  Maersk Oil took over operation of the Dansk Undergrunds Consortium’s fields in the Danish section of the North Sea.

• 1962

  Establishment after Danish North Sea concession

  [1]Maersk Oilen.wikipedia.org

  The Maersk Group established its oil and gas company after receiving a concession for exploration and production in Denmark’s North Sea sector.

International upstream oil and gas exploration and production company with a major Danish North Sea operating heritage.

• Upstream petroleum production

  Crude oil

  Crude oil was one of Maersk Oil’s principal outputs from its exploration and production portfolio. Production came from fields in Denmark and several international operating areas, including the United Kingdom, Qatar, Kazakhstan, the United States Gulf of Mexico, Algeria and Brazil. The company’s activities covered field operation and development rather than consumer-facing fuel retail.

• Upstream natural-gas production

  Natural gas

  Natural gas was produced alongside crude oil across Maersk Oil’s upstream assets. The company also participated in major gas developments, notably the Culzean field in the United Kingdom’s North Sea. Following the 2018 acquisition, these activities were transferred into Total’s upstream organization rather than continuing under the Maersk Oil brand.

• 2017

  Sale of Maersk Oil to TotalM&A

  Background

  A.P. Møller–Mærsk agreed to divest its oil and gas company as part of a broader portfolio change.

  Action taken

  The parties signed a transaction under which Total would acquire Maersk Oil for US$7.45 billion in a combination of shares and debt.

  Aftermath

  After regulatory and competition approvals, the transaction closed in March 2018 and Maersk Oil was integrated into Total.

  Transaction value. US$7.45 billion (Announced 21 August 2017; completed 8 March 2018)

  Source

• 2015

  Proceed with Culzean field developmentStrategy

  Background

  Maersk Oil and its partners pursued development of the high-pressure, high-temperature Culzean field in the United Kingdom’s North Sea.

  Action taken

  The UK Oil and Gas Authority approved the consortium’s development plan. Maersk Oil, JX Nippon and BP were expected to invest approximately £3 billion.

  Aftermath

  The project became one of Maersk Oil’s significant late-period international development activities and was forecast to supply a substantial share of UK gas demand at peak production.

  Expected development investment. Approximately £3 billion (2015 development approval)

  Source

• 2018

  Maersk Oil becomes part of Total[1]Maersk Oilen.wikipedia.org

  M&A · Other

  The sale of Maersk Oil to Total closed on 8 March 2018 after the required regulatory and competition approvals, ending the company’s independent corporate existence.

• 2017

  A.P. Møller–Mærsk agrees to sell Maersk Oil to Total[1]Maersk Oilen.wikipedia.org

  M&A

  A.P. Møller–Mærsk announced an agreement to sell Maersk Oil to Total in a combined share and debt transaction valued at US$7.45 billion.

• 2017

  A. P. Møller–Mærsk agrees to sell Maersk Oil to Total[1]Maersk Oilen.wikipedia.org

  M&A

  A. P. Møller–Mærsk announced an agreement to sell Mærsk Olie og Gas A/S to Total in a transaction combining shares and debt and valued at approximately US$7.45 billion.

• 2015

  UK authority approves Culzean development led by Maersk Oil consortium[1]Maersk Oilen.wikipedia.org

  Other

  The UK Oil and Gas Authority approved development of the Culzean high-pressure, high-temperature field in the North Sea by a consortium headed by Maersk Oil, with JX Nippon and BP as partners.

• 2015

  UK authorities approve Culzean field development led by Maersk Oil[1]Maersk Oilen.wikipedia.org

  Product launch · Other

  The UK Oil and Gas Authority approved a consortium headed by Maersk Oil to proceed with development of the Culzean oil and gas field in the North Sea. The project involved JX Nippon and BP’s Britoil and was expected to require approximately £3 billion of development investment.

1. 1Maersk Oilen.wikipedia.org