Fossil energy – Aker BP
Norway’s Aker BP will buy the oil and gas business of Sweden’s Lundin Energy, forming the second-largest listed petroleum firm on the Norwegian continental shelf, the two companies said today.
The cash and stock transaction values the acquired assets at approximately 125 billion Norwegian crowns ($13.9 billion), they said.
“The proposed combination has strategic, and value accretive benefits and the combined company will be characterized by increased scale, world-class quality, and high returns,” Aker BP and Lundin said in a joint statement.
The transaction will be settled through a cash payment of $2.22 billion and a share consideration of 271.91 million new shares issued from Aker BP and distributed to the Lundin Energy AB shareholders.
“We are now creating the E&P (exploration and production) company of the future which will offer among the lowest CO2 emissions, the lowest cost, high free cash flow and the most attractive growth pipeline in the industry,” said Aker BP Chief Executive Karl Johnny Hersvik, who will remain CEO.