Aker BP Merger Completed

Det norske has completed the closing of the merger with BP Norge and the subsequent establishment of Aker BP, a leading independent offshore exploration and production company on the Norwegian Continental Shelf. 

The company is on track with the integration process and reiterates the ambition of a quarterly dividend for the fourth quarter of 2016.

“We are proud to announce the closing of the merger and the creation of Aker BP, the largest Norwegian independent oil and gas producer,” says Karl Johnny Hersvik, Chief Executive Officer of Aker BP. 

“The integration process is on track, and Aker BP is establishing a strong platform for creating value for our shareholders leveraging on unique industrial capabilities, a world-class asset base and financial robustness enabling quarterly dividend payments from the fourth quarter of 2016. We look forward to taking advantage of the attractive growth potential on the Norwegian Continental Shelf and to use the current downturn to build the benchmark exploration and production company together with our suppliers.”
 
Aker BP holds a portfolio of 97 licenses on the Norwegian Continental Shelf, of which 46 are operated, and an estimated 795 million barrels of oil equivalent P50 reserves, with a 2015 joint production of approximately 122,000 barrels of oil equivalent per day. The company says it has a balanced portfolio of operating assets and a high quality inventory of non-sanctioned discoveries, with potential to reach production above 250,000 barrels of oil equivalent per day within 2023.

“Aker BP has an ambition to grow through mergers and acquisitions and organic portfolio development. In addition, there is significant potential for cost savings by approaching new ways of thinking. Aker BP will leverage on a lean and nimble business model, state-of-the-art technological capabilities, and industrial collaborations. We are on track with identifying opportunities across the newly combined entity, and are building a strong and cost effective fit-for-purpose Aker BP,” says Hersvik.

Aker BP will be independently operated and listed on the Oslo Stock Exchange. Aker BP will be jointly owned by current Det norske shareholder Aker (40 percent), other Det norske shareholders (30 percent) and BP (30 percent). BP will also receive a cash payment of $140 million plus positive working capital adjustments as part of the transaction.

All of BP Norge’s roughly 850 employees will transfer to Aker BP.