Det norske, BP Norge finalize merger. Create Aker BP

Det norske oljeselskap, a Norwegian oil company, and BP Norge, a Norwegian subsidiary of the British oil firm BP, have completed their previously announced merger.

Det norske said on Friday morning that the closing of the transaction was scheduled to take place today, September 30, 2016.

On Friday afternoon, Det norske reported that the merger and the subsequent establishment of Aker BP, the independent offshore E&P company on the Norwegian Continental Shelf, was completed.

To remind, the deal was announced mid-June, when it was agreed that Det norske would issue 135.1 million shares based on NOK 80 per share to BP as compensation for all shares in BP Norge, including assets, a tax loss carry forward of $267 million and a net cash position of $178 million.

In parallel, Aker, Det norske’s major shareholder, would acquire 33.8 million of these shares from BP at the same share price to achieve the agreed-upon ownership structure.

The company has been renamed Aker BP with Aker and BP as main industrial shareholders. The new E&P company is independently operated and listed on the Oslo Stock Exchange.

Aker BP is jointly owned by Aker (40 percent), BP (30 percent), and other Det norske shareholders (30 percent).

Also, the company’s shares will from and including October 3, 2016, trade under the new name Aker BP ASA and the new ticker symbol “AKERBP” on Oslo Børs.

“Aker BP has an ambition to grow through M&A and organic portfolio development.”

Following the merger, Aker BP holds a portfolio of 97 licenses on the Norwegian Continental Shelf, of which 46 are operated. The combined company holds an estimated 723 million barrels of oil equivalent P50 reserves, with a 2015 joint production of approximately 122,000 barrels of oil equivalent per day. Det norske had a net average production of 60,000 barrels of oil equivalent per day in 2015.

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

Hersvik added: “Aker BP has an ambition to grow through M&A and organic portfolio development. In addition, there is significant potential for cost savings by approaching new ways of thinking.

Effective from the closing of the merger, Bernard Looney and Kate Thomson are elected new members of the Board of Directors in Aker BP. Kitty Hall and Kjell Pedersen have at the same time resigned from their duties as members of the board.

Offshore Energy Today Staff