Aker BP has completed the $14 billion cash and stock deal to acquire the oil and gas business of Lundin Energy, creating a purely Norwegian Continental Shelf (NCS)-focused exploration and production (E&P) company .
The merged entity is expected to hold a “world-class” asset base, with low operating costs, low carbon emissions and increased, sustainable dividends.
As part of the merger agreement signed earlier this year, shareholders of Lundin Energy’s E&P business will receive $2.22 billion in cash and more than 271.9 million Aker BP shares for each share held. .
Shareholders will also retain their stake in Lundin Energy’s renewable energy business.
As of July 1, 2022, Lundin Energy Norway will operate as a 100% subsidiary of Aker BP. The name of this subsidiary will be changed to ABP Norway AS.
Aker BP CEO Karl Johnny Hersvik said, “Our ambition is to create the best oil and gas company in the world with low costs, low emissions, profitable growth and attractive dividends. We will also play an important role in the global energy transition.
Lundin plans to change the renewable energy trading name to Orrön Energy AB (Orrön Energy), effective July 1, 2022.
Upon closing of the transaction, Lundin Energy shareholders will hold a 43% stake in Aker BP.
Lundin Energy President and CEO Nick Walker said: “Value creation is at the heart of our business and this combination is a unique opportunity to create a world-leading E&P company, with significant scale. , production growth and strong free cash flow generation in the next. decade.
“With that, there’s a business with low costs and industry-leading carbon emissions.”
Aker BP has disclosed plans to invest more than 150 billion Norwegian kroner ($15.1 billion) in the period leading up to 2030 to develop projects.
During this period, the company will also drill approximately 180 new wells and undertake exploration programs.