Copenhagen-based shipping giant Maersk has announced that it will split its operations to focus on North Sea exploration and drilling.
Shipping Giant Maersk Set to Split, Directs Interests towards North Sea
Formally known as AP Moller-Maersk, the family owned company will continue with its core business in logistics and transport.
Meanwhile, the energy division will narrow down its global operations to focus more on its area of expertise in the North Sea.
The energy division employs up to 800 workers operating from Aberdeen, and working in offshore and onshore drilling.
Maersk itself employs about 88,000 people across 130 countries with an estimated turnover of over $40 billion.
The company has said that while work will continue on the current projects, new investment cash will be low especially in drilling and tankers.
Maersk Oil has had a presence in the North Sea for 11 years and has contributed immensely to some of the largest projects such as the Golden Eagle
The firm also operates the Culzean gas field project, one of the largest developments in UK waters. The gas field is expected to meet up to 5% of the gas demand in Britain upon its scheduled completion of 2019.
In a statement, Michael Pram Rasmussen, the company’s chairperson said, “Dividing our transport and logistics business from our oil and oil related operations will allow us to focus on their individual markets given that both markets have very different underlying fundamental and environments.”
The drilling, oil, offshore and tanker divisions will be involved in joint venture, IPOs and sales over the next two years given their below level profit expectations.
Maersk’s strategy indicated that Maersk Oil would adjust its strategy to specialize in fewer geographical areas with the goal of gaining scale in basins, especially in the North Sea.
Focusing its efforts in the North Sea will allow the company to leverage it’s the capacities in well technologies, subsurface modeling and lean operations with the firm looking to grow its operations through mergers and operations.