Merger between Aker BP and Lundin Energy’s E&P Business Completed

Source: www.gulfoilandgas.com 6/30/2022, Location: Europe

Lundin Energy’s E&P business was transferred to Aker BP on 30 June. “Our ambition is to create the world’s best oil and gas company with low costs, low emissions, profitable growth and attractive dividends. We will also play an important role in the global energy transition,” says Aker BP CEO, Karl Johnny Hersvik.

The merged company is the second largest operating company on the Norwegian continental shelf (NCS). The company has a substantial resource base which provides a very good foundation for further growth and leads the way in terms of both low costs and low emissions per barrel.

“In 2016, Aker ASA worked in tandem with bp to merge Det Norske and BP Norge into Aker BP. The ambition back then was to create the leading exploration and production company offshore. Now we’re taking another big step, in cooperation with the Lundin family. Together, we will work to develop Aker BP into the oil and gas company of the future. We will lead the way when it comes to low costs, low carbon, profitable growth and attractive dividends. We will also take the lead to bring about fundamental improvements, such as through digitalisation,” says chair of Aker BP’s board, Øyvind Eriksen.

The best team
Aker BP is uniquely positioned for profitable growth. The company will operate or participate as a partner in most of the major field developments on the NCS in the next few years, with NOAKA, a new central platform on Valhall, the King Lear tie-back to Valhall, Wisting and Skarv satellites as the largest projects. Overall, Aker BP plans to invest more than NOK 150 billion in development projects in the period up to 2030. During the same period, the company will drill around 180 new wells and carry out an exciting exploration programme. All this will contribute to significant production growth in the years ahead.

“The leading company needs to have the leading team. With the merger of Aker BP and Lundin, I’m confident that we have the best team on the Norwegian shelf. But we’re going to need even more people to join in and help us create the E&P company of the future,” says Karl Johnny Hersvik.

Will give more back to society
The development projects, the exploration activity and operation of our six production hubs create significant positive ripple effects for the supplier industry, along with tens of thousands of jobs with highly competent companies across the country.

“These are the same companies that will further develop the knowledge and expertise needed to deliver on renewable projects,” says Hersvik.

He points out that the energy transition is the largest and most important strategic challenge the industry has ever faced.

“The world needs more energy which is sustainable, affordable and reliable. Aker BP is already today among the oil and gas companies in the world with the lowest CO2 intensity. We are progressing according to plan to achieve our targets to reduce our emissions by 50 percent by 2030, and plan to neutralise the remaining emissions,” says Hersvik.

“In addition to reducing emissions, the oil and gas resources must be managed in a way that gives even more back to society,” he adds.

That’s why Aker BP has made a strong commitment to a wide range of digitalisation measures aimed at increasing productivity. At the same time, the company is working closely with its alliance partners to maximise value creation and reduce emissions. The company wants to lead the way in transforming the oil and gas industry.

“We want the industry to work together more closely, and to share more. We intend to build the foundation for new industries to emerge. We will reduce emissions from our activities. And we will bolster the profitability. Increased value creation gives the State and our owners capital that could be invested in new business and industry,” says Hersvik.

Integration in three phases
The initial announcement of Aker BP’s acquisition of Lundin Energy’s E&P business was made on 21 December 2021.

The merger will be implemented in three stages:
- From 1 July this year, Lundin Energy Norway AS will operate as a fully owned subsidiary of Aker BP ASA. The subsidiary’s name is changed to ABP Norway AS.
- From 1 October, all employees will be fully integrated into a single organization
- ABP Norway AS will then, according to the plan, be merged with Aker BP ASA as soon as it is practically feasible.


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