Norway: BP signs $1.3bn deal with Det norske to merge oil and gas businesses

Norwegian firm Det norske oljeselskap (Det norske) has signed a $1.3bn agreement with BP to merge with BP Norge in a bid to create the largest Norwegian independent oil and gas producer.

Det norske expects the merger deal to significantly boost the combined company’s operations, cost efficiency and growth potential while allowing the company to initiate dividend payment.

Based at Fornebuporten, Norway, the new entity will be named as Aker BP ASA (Aker BP) and will combine assets and expertise from both companies’ Norwegian exploration and production operations.

Aker, the Det Norske’s major shareholder, will have 40% stake in the combined company while BP and other Det norske shareholders will have 30% stakes each.

BP group CEO Bob Dudley said: “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.

“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.

Full Content: Business Insider

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