French exploration and production company Total has completed the previously announced acquisition of AP Moller and Maersk’s subsidiary Maersk Oil to strengthen its position in the North Sea.

Originally signed in August last year, the acquisition is set to result in around one billion barrels of oil equivalent of 2P/2C reserves and resources to Total.

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The company will also have a production of about 160,000 barrels of oil equivalent per day (boe/d) this year, with an opportunity to have increased production of more than 200,000boe/d by the early 2020s.

Total chairman and CEO Patrick Pouyanné said: “First, it illustrates our strategy to build on our strengths and grow our presence in Total’s core areas, like the North Sea, to strengthen our leadership there.

“Second, it brings high-quality and low-breakeven assets, enhancing our worldwide portfolio. Third, the strong overlap between Maersk Oil and the Group’s assets will generate more than $400m of synergies per year.”

“It illustrates our strategy to build on our strengths and grow our presence in Total’s core areas, like the North Sea, to strengthen our leadership there.”

The company has now shifted its regional hub for North Sea activities to Copenhagen.

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Pursuant to the agreement, Total will issue around 97.5 million shares valued at $4.95bn to AP Moller-Maersk.

The deal also includes $2.5bn of Maersk Oil’s debt.

Following the receipt of shares, AP Moller-Maersk is set to hold 3.70% of Total’s capital.

Furthermore, the deal allows Total to strengthen its growth areas in Algeria and in the Gulf of Mexico in the US.

Maersk Oil holds an 8.44% interest in the Johan Sverdrup oil field, Norway, along with 49.99% in the Culzean gas field, UK, and 31.2% in the Tyra producing gas field, Denmark.

Other projects in which the company holds interests include the Jack producing oil field in the US, as well as El-Merk and Hassi Berkine producing oil fields in Algeria.