Thursday, October 11, 2012

Giant Container and Bulk Freight Shipping Group Aspires to Port and Oil Developments

Maersk Reveals Five Year Plan for APM and Energy Sector
Shipping News Feature

DENMARK - WORLDWIDE - Whilst other bulk and container shipping groups sweat out the concerns centred on oversupply of vessels the biggest fish in the pond, A.P. Moller Maersk, shows that its diversification strategy is in full swing with plans afoot to grow the freight handling subsidiary APM into the world's biggest port and inland terminal operator by 2016 and huge expectations for its energy sector. Speaking at the Group’s Capital Markets Day, Group CEO Nils S. Andersen said:

"APM Terminals has an exciting terminal portfolio and pipeline for continuous expansion and we feel enthusiastic about the opportunities, which will provide value to us and our partners in the many countries in which APM Terminals operates."

The Maersk boss presented the company’s strategy to become the leading port and inland terminal operator by 2016 and reach a turnover in excess of one billion dollars within 5 years. Meanwhile Maersk Oil announced its reserves and resources figures for the first time after implementing the industry-wide Society of Petroleum Engineers’ Petroleum Resources Management System (SPE). Going forward, Maersk Oil will publish SPE-compliant reserves and resources numbers every year.

The company aims to increase its entitlement production by 50% to 400,000 barrels of oil equivalent per day (boed) by 2020 from a current level of 265,000 boed. The increase in production will come from maximising output from current assets and from field development projects, already sanctioned or very likely to be so in the near future. Andersen said:

"Our exploration activities have been successful and we will in coming years invest significantly in the development of the finds. We have the financial resources, the skills and the execution experience it will take to reach a production level of 400,000 barrels per day. Exploration activities will remain high in order to sustain the production level when we reach it.”

The firm expanded its exploration activities in 2007 and now has a portfolio which currently includes 120 prospects and leads. Maersk Oil will continue to spend US$1 billion per year on exploration activities ensuring the production is sustainable on target beyond 2020. The intention is to achieve the targeted production levels through four development projects which have already been sanctioned or the company believes will receive sanctions shortly. Maersk Oil will furthermore focus on executing development projects in the coming years which will increase capital expenditure from US$1-3 billion per year in recent years to US$3-5 billion per year going forward.