Aker ASA: Aker BP completes the merger with Lundin Energy’s oil and gas activities in Norway

Reference is made to the stock exchange notice published by Aker ASA (“Aker”) on 21 December 2021 and the closing announcement published by Aker BP ASA (“Aker BP”) today regarding the merger (the “Merger”) between Aker BP and Lundin Energy MergerCo AB (publ) (the “Target”), a newly established Swedish public limited liability company wholly owned by Lundin Energy AB (publ) (“Lundin Energy”), consisting of Lundin Energy’s Norwegian exploration and production business.

The merged company is the largest listed E&P company focused exclusively on the Norwegian Continental Shelf (“NCS”). Aker, BP Exploration Operating Company Ltd (“bp”) and Nemesia S.á.r.l (“Nemesia”) (Lundin family) are the three main shareholders.

Aker will continue to be the largest shareholder in Aker BP with a 21.16 per cent ownership, held through its wholly owned subsidiary Aker Capital AS, bp will hold 15.87 per cent, Nemesia will hold 14.37 per cent and other shareholders will hold 48.60 per cent. Aker, bp and Nemesia have undertaken a 6-month lock-up on their Aker BP shares from closing.

The Merger of Aker BP and Lundin Energy unites two highly successful E&P companies which have both been instrumental in the development of the NCS for more than a decade.

“Through this merger we create the oil and gas company of the future. Aker BP is positioned with industry leading low cost and low CO2 emissions. The company has a target of net zero emissions by 2030 and is offering a reliable and secure source of energy,” said Øyvind Eriksen, President and CEO of Aker, and Chairman of Aker BP.

Aker BP is now the second largest operating company on the NCS after Equinor. Aker BP will continue to be a global frontrunner in the digitalization of the oil and gas industry.

“The shareholding in Aker BP is the most valuable asset in the Aker portfolio and will continue to be a core part of our industrial holdings long-term, providing valuable upstream capital which Aker will use to invest further in the energy transition and other industries,” said Eriksen.

Bernard Looney, CEO of bp, commented: “We welcome this merger, which will strengthen and significantly enhance the long-term future of Aker BP. The combination of Aker BP and Lundin Energy’s Norwegian oil and gas business has created a world-scale independent oil and gas company with a leading position in very high-quality, resilient resources with best-in-class CO2 emissions intensity. As investors in Aker BP, we are excited about the prospects for the new enlarged company.”

Ian Lundin, outgoing Chairman of Lundin Energy, commented: “I believe that what is being created by merging our great organisations is a company that is truly unique in our industry. The new company is going to be a model for the independent E&P of the future; growing production from a world class asset base, coupled with low-cost operations and a carbon footprint which will be amongst the lowest in the industry. My family and I are very much looking forward to the next chapter of value creation from the combined business.”

-ENDS-