Maersk Oil to acquire shares in onshore exploration licenses

Denmark's Maersk Oil, the oil and gas business of the Maersk Group, has entered into an agreement to purchase half of Africa Oil Corporation's shares in three onshore exploration licences in Kenya and two more in Ethiopia, the company announced on Monday.

The acquired licences cover an area of approximately 100,000 square km and include eight recent oil discoveries, with ongoing exploration and appraisal activities in the Turkana region of northern Kenya and southern Ethiopia, Maersk Oil said in a statement.

"Maersk Oil is committed to pursuing profitable growth by focusing on expanding within our core geographies," said Maersk Oil CEO Jakob Thomasen. "In addition, we are rebuilding the exploration business with new acreage positions and pre-development discoveries to balance the risk profile in our portfolio. This agreement with Africa Oil is an example of this," Thomasen added.

Under the terms of the agreement, the value of the deal is split between an upfront farm-in payment of 365 million U.S. dollars (393 million U.S. dollars), including exploration costs.

Moreover, Maersk Oil will make a future contingent payment of up to 480 million dollars for the Lokichar Project, determined by the size of the resource after final appraisal and the agreed timetable for first oil.

"This investment adds to an already attractive non-operated onshore portfolio for Maersk Oil that includes our 25 year presence in Algeria. This is an important driver of long term value," Thomasen added.

The agreement is subject to relevant government approvals in both countries, Maersk Oil said. (1 euro=1.08 U.S. dollars) Endit