Det Norske and BP to join forces

BP and Det Norske Oljeselskap have joined forces to create Aker BP, an independent oil and gas company combining the assets from both companies’ to form one of the largest independent Norwegian oil and gas producers.

The proposed transaction will see the BP Norge and Det Norske Oljeselskap businesses combining and being renamed Aker BP. Aker BP will be independently operated and listed on the Oslo Stock Exchange.

Det Norske Oljeselskap shareholder, Aker, will own 40 per cent of the new company, other Det Norske Oljeselskap shareholders will own 30 per cent and BP will receive 30 per cent.

BP will also receive a cash payment of US$140 million as part of the transaction.

The completion of the transaction, which is expected by the end of 2016, is subject to customary closing conditions, regulatory review and approval by Det Norske Oljeselskap shareholders.

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