Aker BP ASA and Lundin Energy plan to merge, creating Norway’s second largest oil and gas producer with cumulative production next year of more than 400,000 boe/d.
The combined company will operate six major production hubs on the Norwegian continental shelf with further growth expected through the 500-million bbl North of Alvheim Krafla Askja (NOAKA), Valhall new process and wellhead platform, and 77-million boe King Lear projects in the North Sea.
It will also be the second largest owner of the Johan Sverdrup oil field (31.6%) and a partner in the Wisting oil development in the Barents Sea. These projects, some with low break-even costs, could lift the new group’s production above 500,000 boe/d by 2028.
Aker BP expects to take final investment decision on NOAKA in late 2022, having awarded front-end engineering and development contracts earlier this year related to field development of NOA Fulla in the area’s southern portion (OGJ Online, Sept. 15, 2021).
The combined group would hold reserves of more than 2.7 billion boe and could deliver operational synergies of up to $200 million per year, according to the companies.
Lundin’s onshore renewable assets in the Nordic nations, with forecast power generation of 600 GWhr/year once fully constructed, are not part of the planned combination and will remain as a standalone renewable energy business.
Assuming Norway’s authorities approve the merger, Aker BP’s executive management team would run the combined company. All personnel associated with Lundin Energy’s oil and gas assets in Norway will transfer to Aker BP with a work location in Oslo.
