6/10/2016, 1:02 PM (Source: TeleTrader)
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BP, Det Norske to create new oil & gas company Aker BP

Oil giant BP Plc and Norwegian Det Norske Oljeselskap ASA have created new oil and gas company, establishing largest independent oil and gas producer in Norway, second only to state-owned Statoil. The decades old partnership has now been transformed into new joint venture.

BP Norge and Det Norske will combine their business to form Aker BP, which will keep all 850 employees of BP Norge. Ownership of Aker BP will be divided between Aker ASA (40%), BP (30%) and Det Norske (30%). The new company will be listed on the Oslo Stock Exchange, where it will issue 135.1 million shares at starting price of 80 Norwegian krone (€8.64; $9.76). It would value the new Aker BP at NOK 1.08 billion (€116 million; $132 million).

"We look forward to taking advantage of the attractive growth potential on the Norwegian Continental Shelf through this industrial partnership with BP and to deliver on Aker BP's dividend story," said Øyvind Eriksen, Chairman of the Board of Directors in Det Norske.

"BP and Aker have matured a close collaboration through decades, and we are pleased to take advantage of the industrial expertise of both companies to create a large independent E&P company," commented Bob Dudley, chief executive of BP group.

Shares of Det Norske jumped 7.78% to €9.71, and BP Plc shares dropped 0.78% to 371.25p by 1:02 p.m. CET.

Breaking the News / ZR