Kenyan President Uhuru Kenyatta has announced the sale of Maersk’s oil subsidiary to French Total. The operation is expected to accelerate the pre-exploitation phase of the oil field discovered by the British group Tullow Oil and the Canadian Africa Oil in 2012 in the Turkana region, located in northern Kenya.
According to a presidential statement “Total has confirmed its commitment to ensure that the Lokichar-Lamu pipeline is the only route for Kenya’s crude oil from the Lokichar fields. Following this commitment, the government has consented to the proposed acquisition of the capital stock of Maersk Oil Exploration International (Mogas Kenya) for blocks 10BA, 10BB and 13T “.
It should be recalled that this purchase was mentioned just before the electoral process last August, before being frozen following the political blockade which had lasted nearly three months. This initial agreement stipulated the transfer of Maersk Oill, from the Danish operator AP Moller Maersk, to Total for 7,45 billion dollars (769 billion Kenyan shillings).
The operation should allow the French oil company to increase its profits, its cash flow or strengthen its dividend prospects.
For Maersk, this sale should allow it to refocus on its core business, including its transport and logistics activities. The restructuring of the Danish giant also means the end of its aspirations in the energy sector, following the decline in revenues.
Under the terms of the original agreement, Maersk was to receive 4,95 billion dollars (511 billion Kenyan shillings) in Total shares, while the French group had to assume 2,5 billion dollars (258 billion Kenyan shillings) of debt contracted by Maersk Oil.
For now, the announcement by the presidency does not include any details on the terms of the transaction, nor any mention of the agreement reached between the two groups, just before the presidential elections last August.
