Maersk Oil expands in Gulf of Mexico
A.P. Moller-Maersk’s oil group has entered into an agreement to purchase interests in three oil fields in the Gulf of Mexico from Devon Energy Production Co.
Maersk Oil will pay $1.3 billion to Devon for its half interest in the Cascade field and a 25 percent participating interest in each of the Jack and St. Malo fields. Maersk said it will invest from $1.3 billion to $1.8 billion to develop the fields and about $4 billion over time.
The fields are located in deep water. The Cascade field, operated by Petrobras, is expected to start production in 2010 and the Chevron-operated Jack and St. Malo fields are expected to commence production in 2014. Maersk Oil said its estimated share of recoverable resources from the three fields combined is more than 200 million barrels of oil equivalent.
Maersk Oil expands in Gulf of Mexico
