Maersk set to net nearly 1 billion $ in a settlement of tax claims in Algeria

A.P. Møller - Mærsk A/S (OMX: MAERSK A, OMX: MAERSK B) subsidiary Mærsk Olie, Algeriet A/S and national oil company, Sonatrach S.P.A. have reached a settlement over tax claims. Maersk Olie has together with Anadarko and Eni been partnering Sonatrach in several blocks in Algeria under a production sharing contract.

Several years ago a new tax law called "Taxe sur les profits exceptionnels" (TPE) became effective. This imposed new revenue tax. Anadarko and Maersk argued that collection of the TPE by Sonatrach from its share in oil production due to them under the agreement was a breach of contract. The parties have now settled those claims under mutual concessions.

The settlement will land Maersk additional crude oil volumes worth approximately 920 million U.S. dollars over the next 12 month period. The effect on the terms of the agreement between the companies will also moderately increase Maersk’s share of the oil production for the remainder of the agreement duration. The settlement is subject to approval of the Algerian authorities and is expected witin 4 months. Maersk has climbed 2% in today’s trading.