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AkerBP takes over Lundin Energy’s oil and gas business

Norwegian oil and gas company Aker BP has taken over Lundin Energy’s oil and gas business and established the second largest oil and gas company on the Norwegian continental shelf.

Aker BP said in December 2021 Agreed to acquire Lundin Energy’s oil and gas business through a statutory merger. After the proposed merger received all required approvals in May, Lundin Energy’s E & P business was transferred to AkerBP on June 30. read more.

“Our goal is to create the world’s best oil and gas company with low cost, low emissions, profitable growth and attractive dividends. It also plays an important role in the global energy transformation. “I will do it,” said Aker BP CEO of Karl Johnny Haasbic.

” [merged] The company provides a very good foundation for further growth and has a substantial resource base that leads both in terms of low cost and emissions per barrel, “says AkerBP.

In December, the merger could bring up to US $ 200 million in business synergies annually by improving operations, saving exploration costs, and optimizing the organization, with the merged company having 2.7 billion barrels of oil. He said he has an equivalent resource base. It has great growth potential.

“In 2016, Aker ASA worked with BP to integrate Det Norske and BP Norge into Aker BP. The ambition at the time was to set up one of the leading offshore exploration and production companies. Now we are the Rundin family. Together, we are taking another big step. Together, we will develop AkerBP into a future oil and gas company. Low cost, low carbon, profitable growth, attractive We will take the lead in paying dividends, and we will take the lead in bringing about fundamental improvements, such as through digitalization, “said AkerBP’s board chair. Øyvind Eriksen.

Starting July 1, Lundin Energy Norway AS will operate as a wholly owned subsidiary of Aker BPASA. On the same day, the name of the subsidiary was changed to ABP Norway AS. From October 1st, all employees will be fully integrated into one organization.

Lundin renames and focuses on renewable energyLundin Platform off the coast of Norway-Credits: Lundin Norway

After the sale of its oil and gas business was completed, Lundin Energy changed its name to Orrön Energy AB and announced that it is now a pure renewable energy business.

“From today, Orrön Energy will be a pure renewable energy business in Scandinavia with a strong portfolio of high quality, low cost assets and a new renewable energy growth company within the Lundin Group of Companies. Orrön Energy will be acquired. With a financial capacity of up to MUSD 180, we are in a unique position to take advantage of energy transition opportunities to create long-term shareholder value. “

Thursday’s comment, Ian Landin, Lundin Energy (or Orrön)’s retired chairman said: Combined annual average return to 28% shareholders annually for over 20 years. Through diligence, patience, and above all, a strong management team, the company has grown into one of the world’s leading E & P companies.

“The combination of AkerBP and Lundin Energy’s Norwegian operations is transforming a new page in the company’s history, ensuring continued strong production growth and sustainable dividend growth over the next decade. Value creation and long-term. Growth is central. It is the spirit of Lundin Energy and that is all about this deal. “

“I am convinced that a global energy transformation will create unique investment opportunities and will be involved in the continuous building of shareholder value from this process to the birth of Orrön Energy. We thank you for your support and look forward to a new era of value creation at both AkerBP and Orrön Energy. “

Win-Win

Nick walker, Lundin Energy’s retired President and CEO commented: E & P companies are seeing significant scale, increased production and strong free cash flow for the next decade. Coupled with this, it is an industry-leading low-cost, low-carbon emission business. “

“We are confident that the combination with AkerBP will be a” mutually beneficial “result for both shareholders as it will create a business that is in a position to thrive and provide increased sustainable dividends through the energy transition. We are also pleased to be able to follow Orrön Energy’s progress with the right management team, governance and balance sheet to take advantage of the enormous opportunities posed by the energy transition.

“To the great support over the years, the employees who have helped create such a great business, and finally the board of directors who have consistently empowered and supported management in our efforts. I am very grateful to you.”

https://www.oedigital.com/news/497804-aker-bp-takes-over-lundin-energy-s-oil-and-gas-business AkerBP takes over Lundin Energy’s oil and gas business

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