Maersk Oil buys fields for close to a billion dollars

New fields will fan out investments and supplement the core business on known oil fields by a total 100,000 square kilometers where eight recent test drillings have allegedly turned up oil, informs Maersk Oil.

Photo: Maersk Oil

Maersk Oil pulled out the big wallet on Monday morning. The company will pay USD 365 million up front and is prepared to pay another USD 480 million in subsequent payments for three oil exploration agreements in Kenya and Ethiopia. The remaining payments concern the Lokichar project and depend on the scope of resources discovered and whether the parties comply with agreements for when first oil can be extracted.

The acquisition has Maersk Oil purchasing half of Africa Oil Corporation, a move that gives the company access to the three licenses in which exploration efforts will now be turned up to full speed. The licenses cover a total 100,000 square kilometers and contain eight recent oil discoveries. The fields are located in the Turkana region in northern Kenya and southern Ethiopia.

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