Maersk Oil said Wednesday that its acquisition by Total SA (TOT) is on track for closure during the first quarter of 2018, while the French oil major has made its first management appointments to the future combined business.
Total agreed to acquire the oil unit of Danish conglomerate A.P. Moeller-Maersk A/S (MAERSK-B.KO) last month for $4.95 billion in a deal that will help the French energy company bolster its position among the world's largest oil companies, potentially boosting its earnings and cash flow, and shoring up its ability to pay dividends.
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Following successful closure of the deal, Maersk Oil's Chief Operating Officer Martin Rune Pedersen will become Vice President of Total's operations in Norway, Denmark and the Netherlands.
Troels Albrechtsen, Chief Technology Officer at Maersk Oil, will become Vice President for the technical center to be established in Copenhagen. The center will be part of Total's global technical organization, supplementing existing centers in Paris and Pau, France.
"I am pleased to see Total's continued commitment to maximize the full value of Maersk Oil's operational and technical capabilities and the positioning of a strong Danish leadership team in their North Sea business," said Claus V. Hemmingsen, Chief Executive of Maersk's energy division.
Gretchen Watkins, the current Chief Executive of Maersk Oil, will leave the company when Total's acquisition successfully closes. She will continue to lead Maersk Oil until then.
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(END) Dow Jones Newswires
September 27, 2017 05:59 ET (09:59 GMT)