Denmark's Maersk Group to Split in Two
Denmark’s AP Moller-Maersk group announced September 22 that it is splitting up. The group will be reformed into two divisions: Transport & Logistics, and Energy. The decision is the result of a structural review called for by the group’s board in June.
Group chairman Michael Pram Rasmussen said their industries are “very different” and faced different challenges: “Separating our transport and logistics businesses and our oil and oil related businesses into two independent divisions will enable both to focus on their respective markets.”
Energy will consist of Maersk Oil, Maersk Drilling, Maersk Supply Service and Maersk Tankers.
Within energy, Maersk Oil will focus on optimizing and strengthening its strong position in the Danish, UK and Norwegian parts of the North Sea.
A group statement added that “Maersk Oil will adjust its current strategy to focus its portfolio in fewer geographies to gain scale in basins, particularly in the North Sea, where it can leverage its strong capabilities within subsurface modelling, well technology and efficient operations. Maersk Oil will aim to strengthen its portfolio through acquisitions or mergers.” It would also mature existing key development projects - expected to include the $4.5bn Maersk-operated Culzean gasfield, the largest UK gas project to be sanctioned ince 1990 -- while keeping exploration activities and expenses at a low level. Maersk Oil was missing from a list of 33 firms this week that want to participate in Norway’s APA 2016 licensing round.
Investments in Maersk Oil’s strategic projects already sanctioned or under development will continue as planned, the statement noted. The company pulled out of Qatar earlier this year, after its Al-Shaheen oil field licence was retendered and won by France's Total.
Even back in April, Maersk announced it faced tough choices, including the likely decommissioning of Denmark's key offshore gas hub by 2018.
Gretchen H Watkins becomes Maersk Oil CEO from October 1 (Photo credit: Maersk Oil)
Claus V Hemmingsen becomes new CEO of the group’s Energy division, effective October 1, with Graham Talbot its CFO. The latter is currently finance chief at Maersk Oil, where current CEO Jakob Thomasen is stepping down with current COO Gretchen Watkins replacing him October 1. A US citizen, Watkins joined Maersk in 2014 from a career at BP and later Marathon where she was an upstream vice-president from 2008 to 2013.
Ane Maersk McKinney Uggla, chair of the family-owned controlling shareholder AP Moller Holding, said that the latter would remain as “an influential shareholder” in both divisions; the group will hold a capital markets day in 4Q2016 at which “further insights into the reorganisation” would be provided.
Mark Smedley