Aker BP Merger Completed

Det Norske confirmed September 30 that it completed the closing of its merger with BP Norge AS (BP Norge) and the subsequent establishment of Aker BP. The merger was first announced in June 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,” said Aker BP CEO Karl Johnny Hersvik: “The integration process is on track… and 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 E&P company together with our suppliers."

Aker BP CEO Karl Johnny Hersvik (Photo credit: Statoil/Det norske)

Aker BP holds a portfolio of 97 licenses offshore Norway, of which 46 are operated. Joint 2015 production was 122,000 barrels of oil equivalent per day and it said this has potential to exceed 250,000 boe/d within 2023. BP Norge’s website said that from October 1 it would be a subsidiary of Aker BP.

Under terms announced in June, Aker -- which owned 49.9% of Det norske - will own 40% of Aker BP, other Det norske shareholders 30% and BP 30%, while BP also receives a cash payment of $140mn plus positive working capital adjustments. In October 2013, Hersvik was appointed Det norske CEO with effect from May 2014; prior to that he was senior vice president of Statoil's research and development division. 

Mark Smedley