A.P. Møller – Mærsk A/S confirmed Wednesday it will split its oil and transportation business into two separate divisions.
The firm will reorganize into a transport & logistics division and an energy division.
Mærsk will separate its oil and oil businesses, either individually or in combination.
“Maersk Oil will focus on optimizing and strengthening its strong position in the Danish, British and Norwegian parts of the North Sea,” the firm said.
The energy division will consist of Maersk Oil, Maersk Drilling, Maersk Supply Service and Maersk Tankers.
“Long term growth in energy demand and sharp reductions in investments in the global exploration and production industry in recent years, leading to an expected reduction in oil supply in the coming years provide opportunities to grow Maersk Oil based on the company’s key technical competencies,” the company said.
Maersk Oil plans to adjust its current strategy to focus its portfolio in fewer geographies to gain scale in basins, particularly in the North Sea,.
Maersk Oil is also aiming to strengthen its portfolio through acquisitions or mergers and said it plans to “mature existing key development projects,while keeping exploration activities and expenses at “a low level.”
Maersk Oil will continue as planned with investments in strategic projects that are already sanctioned or under development.
A.P. Møller – Mærsk said that Maersk Drilling, Maersk Supply Services, and Maersk Tankers will continue to “optimize their market position and operation with the existing fleet and order book.”
Additional investments in the group’s offshore service businesses and Maersk Tankers will be limited, Maersk said.
Maersk Oil CEO Jakob Thomasen will step down as member of the registered management and as CEO on October 1, 2016 and will leave the group on November 1, 2016.
The board of directors expects that the company’s oil and oil related businesses “will require different solutions for future development including separation of entities individually or in combination from A.P. Møller – Mærsk A/S in the form of joint-ventures, mergers or listing.”
The company added that, depending on market development and structural opportunities, “the objective is to find solutions for the oil and oil related businesses within 24 months.”
“The industries in which we are operating are very different, and both face very different underlying fundamentals and competitive environments. 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,” Chairman of the Board Michael Pram Rasmussen said.