Aker BP snaps up Lundin Energy’s oil and gas business

Aker BP is acquiring Lundin Energy’s oil and gas business through a statutory merger, creating the largest listed E&P company focused exclusively on the Norwegian Continental Shelf.

Aker (21.2%), BP (15.9%) and the Lundin family’s Nemesia (14.4%) will be the three main shareholders of the enlarged group. The transaction is being settled through a cash payment of $2.22bn and the issuing of 271.91m new shares to Lundin Energy shareholders.

Øyvind Eriksen, president and CEO of Aker, and chairman of Aker BP, commented: “In 2016 we created Aker BP together with BP when we combined Det norske and BP Norge. We have always admired Lundin Energy both as a partner and as a highly capable operator on the Norwegian Continental Shelf with world class assets, like their 20 per cent participating interest in Johan Sverdrup. Already when we created Aker BP, a subsequent acquisition of Lundin Energy was a vision shared between BP and Aker. Today the vision has become a reality. We are seizing an opportunity that will make a difference for both Aker and Norway for decades to come.”

The merged company will have a combined oil and gas production of above 400,000 barrels of oil equivalents per day and a resource base estimated to 2.7 billion barrels of oil equivalents. It will be the operator of six major production hubs and the second largest owner of the Johan Sverdrup oil field.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
Back to top button