BP and Norwegian oil and gas upstream company Det norske oljeselskap have decided to merge their oil and gas operations in Norway. They will create Aker BP, an independent oil and gas company combining their Norwegian exploration and production assets.
This merger will form the largest Norwegian independent oil and gas producer, challenging national oil and gas company Statoil (around 60% of Norway's oil and gas production). Aker BP will hold an estimated 723 mboe P50 reserves; the cumulated production of Det norske and BP reached 122 kboe/d in 2015.
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 US$140m plus positive working capital adjustments as part of the transaction, which is expected to be completed by the end of 2016. BP will then participate to the development of the giant Johan Sverdrup field (largest oil discovery in Norway in 30 years), expected in late 2019 and in which Det norske holds a 11.57% stake.