A.P. Møller - Mærsk A/S [A.P. Moller - Maersk] said it has signed an agreement with Egyptian General Petroleum Corporation (EGPC) which will see it exit its investment in Egyptian drilling for US$100 million.
EGPC will buyout A.P. Moller – Maersk’s 50 per cent stake, entire portfolio and obligations in Egyptian Drilling Company (EDC), the joint venture set up in 1976 between Maersk Drilling and EGPC, which is owned by the Egyptian Ministry of Petroleum and Mineral Resources in Egypt.
EDC has 70 rigs, most of which are land based. The company employs approximately 5,000 people, 34 of whom are Maersk Drilling employees.
Maersk Drilling said the divestment of EDC is in line with the company’s strategy to focus on offshore drilling in the harsh environment and deep-water markets.
“The divestment is a natural consequence of our announced long-term plans to exit the EDC joint venture, when the timing was right. EDC has a very strong position in the Middle East, and I am confident that the new ownership will enable EDC to develop its business and capabilities even further,” said Jørn Madsen, CEO of Maersk Drilling.