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Released June 16, 2016 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--BP plc (NYSE:BP) (London, England) has sold its Norwegian assets to Det norske Oljeselskap ASA (Trondheim, Norway), creating the country's biggest independent oil and gas producer.
Det norske has agreed to pay $140 million for the BP Norge business, and in return BP will get a 30% stake in the new company, Aker BP ASA, worth $1.3 billion. Det norkse owner, billionaire Kjell Inge Rokke, will control a 40% stake, while Det norske shareholders will retain 30%.
The new company is being heralded as the first real domestic competitor to Norway's state-owned oil and gas giant, Statoil ASA (NYSE:STO) (Stavangar, Norway), which controls around two thirds of the market. By combining their Norwegian assets both companies aim to cut costs and boost their competitiveness. The deal is expected to complete by the end of the year, and BP Norge's 850 employees will transfer to new company, which will have a workforce of around 1,400 people.
The deal gives BP access to the Johan Sverdrup field in the Norwegian North Sea, of which Det norske hold an 11.6% stake. The field is the largest find in Norway for decades and is estimated to hold up to 3 billion barrels of oil.
BP Group Chief Executive Bob Dudley 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 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. This innovative deal demonstrates how we can adapt our business model with strong and talented."
Øyvind Eriksen, chairman of the board of directors in Det norske, commented: "Aker BP will leverage on Det norske's efficient operations, BP's international capabilities and Aker's 175 years of industrial experience. Together, we are establishing a strong platform for creating value for our shareholders through our unique industrial capabilities, a world-class asset base and financial robustness."
Statoil is the major shareholder in the Johan Sverdrup field. Construction of the second of four units for its drilling platform kicked off in March. The utility and living quarters platform will be the largest living quarters on the Norwegian Continental Shelf (NCS) with a capacity of 560 people. The platform will also accommodate the field's control and emergency centre as well as some utility systems covering the whole field centre.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Det norske has agreed to pay $140 million for the BP Norge business, and in return BP will get a 30% stake in the new company, Aker BP ASA, worth $1.3 billion. Det norkse owner, billionaire Kjell Inge Rokke, will control a 40% stake, while Det norske shareholders will retain 30%.
The new company is being heralded as the first real domestic competitor to Norway's state-owned oil and gas giant, Statoil ASA (NYSE:STO) (Stavangar, Norway), which controls around two thirds of the market. By combining their Norwegian assets both companies aim to cut costs and boost their competitiveness. The deal is expected to complete by the end of the year, and BP Norge's 850 employees will transfer to new company, which will have a workforce of around 1,400 people.
The deal gives BP access to the Johan Sverdrup field in the Norwegian North Sea, of which Det norske hold an 11.6% stake. The field is the largest find in Norway for decades and is estimated to hold up to 3 billion barrels of oil.
BP Group Chief Executive Bob Dudley 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 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. This innovative deal demonstrates how we can adapt our business model with strong and talented."
Øyvind Eriksen, chairman of the board of directors in Det norske, commented: "Aker BP will leverage on Det norske's efficient operations, BP's international capabilities and Aker's 175 years of industrial experience. Together, we are establishing a strong platform for creating value for our shareholders through our unique industrial capabilities, a world-class asset base and financial robustness."
Statoil is the major shareholder in the Johan Sverdrup field. Construction of the second of four units for its drilling platform kicked off in March. The utility and living quarters platform will be the largest living quarters on the Norwegian Continental Shelf (NCS) with a capacity of 560 people. The platform will also accommodate the field's control and emergency centre as well as some utility systems covering the whole field centre.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
