Maersk enters into farmout deal with Africa Oil – The Post

Maersk enters into farmout deal with Africa Oil

New assets based in Kenya, the Rift Basin and Ethiopia

Set for growth (photo: iStock)
November 9th, 2015 5:24 pm| by Shifa Rahaman

Maersk Oil and Africa Oil announced today they have agreed a farmout deal that will see the Maersk division acquire 50 percent of Africa Oil’s interests in parts of Kenya, the Rift Basin and Ethiopia.

The partnership will see Maersk Oil fork out 2.4 billion kroner for the purchase of Africa Oil’s land-based oil assets – mostly to reimburse past costs.

Up to 3.3 billion kroner is set to change hands depending on projections about resource growth.

Keen to pursue growth
“Maersk Oil is keen to pursue profitable growth by focusing on expanding within our core demographic areas,” said Maersk Oil chief executive Jakob Thomasen.

“In addition, we will explore activities in new areas and discoveries that have not yet been developed in order to balance our risks and portfolio. The agreement with Africa Oil is an example of this.”