Det norske and Aker Exploration to merge

Norwegian industrial magnate Kjell Inge Røkke will be chairman of the new Det norske oljeselskap. Photo: myaker.net

On Ag. 25, Det norske oljeselskap ASA and Aker Exploration ASA announced they are merging “to realise their shared ambition of creating a bigger and more dynamic oil company.”

As a result of the merger alone, the new company will be the second biggest company by far on the Norwegian continental shelf in terms of licences and operatorship. The new company will be worth $690.5 million in the market, reports Scandoil.com

The combined company will be able to grow more rapidly, both through organic growth and by adopting a forceful approach to continued restructuring in the industry. The companies complement each other and, together, they will be an even stronger partner for other oil companies and the authorities in the further development of the Norwegian continental shelf, states Aker Exploration website.

Strong base

The merged company will have a strong presence along the coast of Norway, with its registered address in Trondheim and offices in Stavanger, Oslo and Harstad. The company will retain the name Det norske oljeselskap ASA, and Erik Haugane will be CEO. Kjell Inge Røkke, chairman of the board of Aker Exploration, will be proposed as chairman of the board of the new Det norske oljeselskap ASA.

The agreed conversion ratio means that Det norske‘s shareholders will own 82 per cent of the merged company, while Aker Exploration‘s shareholders will own 18 per cent. Aker ASA will be the largest shareholder in the company with around 30 per cent of the shares, based on Aker‘s ownership in the two companies today.

CEO Erik Haugane of Det norske is very pleased with the proposed merger. “Having Aker as our largest owner improves the company‘s chances of achieving its goal of becoming a new big oil and gas company with several development projects and substantial production in Norway,” he says.

Source: Aker Exploration ASA