10th Jun 2016 06:02
LONDON (Alliance News) - BP PLC on Friday said it has teamed up with Det Norske oljeselskap ASA to form the largest independent oil and gas producer in Norway, to be called Aker BP ASA.
The pair plan to merge the BP Norge and Det Norske businesses to form the new entity, which will be independently operated and listed in Oslo. BP will take a 30% stake in the new company, Det Norske shareholders will also take a 30% stake and Aker ASA, an existing shareholder of Det Norske, will hold a 40% stake.
Det Norske is a producer operating in Norway and merged with Aker Exploration in 2009, followed by the acquisition of Marathon Oil in 2014, which led to a huge increase in production for Det Norske. Aker holds a 49.9% stake in Det Norske.
"BP and Aker have matured a close collaboration through decades, and we are pleased to take advantage of the industrial expertise of both companies to create a large independent E&P company," said BP Chief Executive Bob Dudley.
"The Norwegian Continental Shelf represents a significant opportunity going forward and we are looking forward to working together with Aker to unlock the long term value of the company through growth and efficient operations," he added.
BP said it will be paid USD140.0 million in cash, plus positive working capital adjustments, as part of the transaction, which should be completed before the end of this year. Det Norske shareholders need to approve the deal and regulatory approval needs to be secured.
BP said all 850 employees of BP Norge will transfer over to the new business.
"In addition to the attractive combination of the two companies' Norwegian asset portfolios, Aker BP will benefit from the combined strength of Det norske's efficient, streamlined operating model and BP's long experience in Norwegian offshore operations, asset knowledge, technical skills and international experience," said BP in a statement.
"The companies believe this new Norwegian super-independent could organically grow production to more than 250,000 barrels of oil equivalent per day by the early 2020s," the company added.
By Joshua Warner; [email protected]; @JoshAlliance
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