BP joins forces with Det Norske to set up ‘super independent’ Norwegian oil and gas explorer

BP and Det norske oljeselskap have jointly set up Aker BP ASA – an independent oil and gas company combining the assets and expertise from both companies’ Norwegian exploration and production operations to form the largest independent oil and gas producer in Norway.

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.

Under the terms of the proposed transaction, the BP Norge and Det norske businesses will combine and be renamed Aker BP ASA. 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%), other Det norske shareholders (30%) and BP (30%). BP will also receive a cash payment of $140 million plus positive working capital adjustments as part of the transaction.

Bob Dudley, BP group chief executive, commented: “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 North Sea 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.

“This innovative deal demonstrates how we can adapt our business model with strong and talented partners to remain competitive and grow where we see long-term benefit for our shareholders.”

All of BP Norway’s 850 employees will transfer to the combined organisation upon completion of the deal.

Det norske merged with Aker Exploration in 2009 and acquired Marathon Oil Norway in 2014. It employs about 550 people.

Det norske is the operator of producing fields Alvheim, Volund, Vilje and Jette. The company is also the operator of the large Ivar Aasen development. The company is also a partner in the Johan Sverdrup field, one of the largest on the Norwegian continental shelf.