Aker BP, Lundin Enter Merger Plan

February 15, 2022

Lundin Energy's platform in the North Sea, offshore Norway - File Photo: Lundin Energy
Lundin Energy's platform in the North Sea, offshore Norway - File Photo: Lundin Energy

Norwegian oil and gas company Aker BP said Tuesday it had officially entered into a merger plan with Lundin Energy, following the proposed merger announcement in December 2021, that will create Norway's second-largest oil producer.

The parties at the time said explained that, under the agreed terms, Aker BP would combine its business with Kommstart 157 AB (“Target”), a newly established Swedish public limited liability company currently wholly-owned by Lundin Energy, which at the time of completion of the merger would consist of Lundin Energy’s oil and gas-related assets. 

"The combination of Aker BP and Lundin Energy unites two highly successful Exploration  & Production (“E&P”) companies which have both been instrumental in the development of the Norwegian Continental Shelf (“NCS”) for more than a decade. 

"The Combined Company will be the second-largest oil and gas producer on the NCS, with a combined oil and gas production of approximately 400,000 barrels of  oil equivalent per day, and a global leader in the E&P sector with regard to low cost and low emissions. The company will be the operator of six major production hubs on the NCS in addition to being the second-largest owner of the giant Johan Sverdrup oil field," Aker BP said Tuesday.

"The Combined Company will be uniquely positioned for profitable growth through participation in major new field development projects like NOAKA,  Wisting, and Valhall NCP/King Lear, as well as continued field development activities around the company’s existing assets," Aker BP said.

Lundin Energy's shareholders will receive as merger consideration a cash amount in SEK corresponding to USD 7.76,  plus 0.95098 shares in Aker BP, in the form of Swedish Depository Receipts, for each share in "Target" outstanding as at the completion of the Merger. 

Completion of the merger is subject to inter alia, approval by the shareholders of each of Aker BP and Lundin Energy at their respective general meetings, which are currently expected to be held in March and April 2022, as well as approval from relevant authorities. 

"Aker Capital AS and BP Exploration Operating Company Ltd, together representing 65.0 percent of the capital and votes in Aker BP, and Nemesia s.a.r.l., representing 33.4 percent of the capital and votes in Lundin Energy, support the Merger and have undertaken to vote to approve the Merger at the respective companies’ general meetings," Aker BP said.

Following completion of the Merger, the shares in the combined company will continue to be listed on Oslo Børs.

The two firms in December said the merger could lead to operational synergies of up to USD 200 million per year, from improved operations, exploration cost savings, and organizational optimization and that the merged firm would have a resource base of 2.7 billion barrels of oil equivalents with significant growth potential.




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