Maersk to Limit Investment in Energy Businesses until Separation

Maersk to Limit Investment in Energy Businesses until Separation
Maersk will limit investment in its energy businesses until they are separated, the group's CEO Soren Skou said in a webinar from the company's Capital Markets Day event.

Maersk will limit investment in its energy businesses until they are separated, the group’s CEO Soren Skou said in a webinar from the company’s Capital Markets Day event.

“We announced that we were going to work over the next 24 months to find solutions for how we could separate out our four energy businesses; Maersk Oil, Maersk Drilling, Maersk Supply [Service] and Maersk Tankers,” Skou said.

“Until we have separated out those businesses, we will manage them as independent businesses, we will limit investments in Maersk drilling, Maersk supply, Maersk tankers and we will work hard to focus Maersk oil more on the North Sea,” he added.

Maersk revealed Tuesday that Maersk Oil’s Culzean project in the UK central North Sea is progressing on schedule, achieving a capital expenditure reduction of $500 million, from an initial $4.5 billion, in the process.

Maersk Oil began drilling the first production well at the Culzean field in late September. The well was the first of six production wells scheduled to be drilled on the high pressure/high temperature (HPHT) field, with continuous drilling activity planned over the next five years, according to Maersk. First gas is expected to be produced from Culzean in 2019.

“This is an important milestone in ensuring that we can deliver Culzean on schedule, and with it 5 percent of UK gas demand in 2020/21,” Gretchen Watkins, CEO designate of Maersk Oil, said at the time.

Discovered in 2008 by Maersk Oil and its co-venturers, the Culzean gas condensate field has resources estimated at 250-300 million barrels of oil equivalent. Production is expected to continue for at least 13 years, with plateau production of 60,000-90,000 barrels of oil equivalent per day, according to Maersk Oil’s website.

The Culzean field is expected to support an estimated 6,000 UK jobs and create more than 400 direct jobs, Maersk Oil said.

A graduate in journalism from Cardiff University, Andreas has eight years of experience as a business journalist. Email Andreas at andreas.exarheas@rigzone.com

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