Maersk Oil Buys Stakes in Kenyan and Ethiopian Licenses
November 09 2015 - 2:14AM
Dow Jones News
By Dominic Chopping
Maersk Oil has agreed to buy half of Africa Oil Corporation's
shares in three onshore exploration licenses in Kenya and a further
two in Ethiopia for a fee that could rise to $845 million, it said
Monday.
The oil arm of Danish conglomerate A.P. Moeller-Maersk A/S
(MAERSK-A.KO) has been cutting exploration activities in light of
the depressed oil price and disappointing exploration results over
the past couple of years. But it said last week it would direct its
short-term focus on identifying inorganic growth opportunities and
investing in exploration acreage to rebuild its portfolio and grow
reserves.
"As part of the Maersk Group, we are in a position, where we can
take advantage of opportunities arising in current market
conditions," Maersk Oil Chief Executive Jakob Thomasen said. "This
is an important driver of long term value."
The acquired licenses cover exploration areas in northern Kenya
and southern Ethiopia and include eight recent oil discoveries.
Four of the blocks are operated by Tullow Oil and the remaining by
Africa Oil.
The deal sees Maersk Oil make an upfront payment of $365 million
with future contingent payments of up to $480 million, dependent on
the size of the resource and the timetable for first oil.
Following the deal, Maersk Oil will hold a 25% interest in
exploration licenses 10BB, 10BA and 13T in Kenya, 25% in Rift Basin
in Ethiopia and 15% in South Omo in Ethiopia.
-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@WSJNordics
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 09, 2015 01:59 ET (06:59 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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