Louisiana Light • 2 days | 73.02 | -0.64 | -0.87% | |||
Bonny Light • 31 days | 78.62 | -2.30 | -2.84% | |||
Opec Basket • 2 days | 73.65 | +0.08 | +0.11% | |||
Mars US • 321 days | 75.54 | -1.36 | -1.77% | |||
Gasoline • 13 mins | 2.050 | -0.010 | -0.48% |
Bonny Light • 31 days | 78.62 | -2.30 | -2.84% | |||
Girassol • 31 days | 79.56 | -1.80 | -2.21% | |||
Opec Basket • 2 days | 73.65 | +0.08 | +0.11% |
Peace Sour • 12 hours | 66.88 | -0.08 | -0.12% | |||
Light Sour Blend • 12 hours | 66.13 | -0.08 | -0.12% | |||
Syncrude Sweet Premium • 12 hours | 70.88 | -0.08 | -0.11% | |||
Central Alberta • 12 hours | 67.88 | -0.08 | -0.12% |
Eagle Ford • 2 days | 67.39 | -0.28 | -0.41% | |||
Oklahoma Sweet • 2 days | 67.50 | -0.25 | -0.37% | |||
Kansas Common • 3 days | 58.02 | +1.10 | +1.93% | |||
Buena Vista • 3 days | 77.67 | +1.10 | +1.44% |
OVO Energy has been ordered…
Crude oil prices rise after…
Zainab Calcuttawala
Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…
BP Plc, which operates in Norway, agreed to a US$1.3 billion merger with its Norwegian counterpart Det Norske Oljeselskap, in a move slated to cut costs and challenge Statoil’s dominance of the Nordic country’s energy industry.
The newly merged company, to be called Aker BP, will produce over 10 percent of the nation’s oil output - still well below Statoil’s 60 percent market share.
Aker, an investment vehicle that holds a majority stake in Det Norske, will own 40 percent of the new company, BP will hold 30 percent and other shareholders will have claim to the remaining 30 percent.
This deal, in which Dek norske oljeselskap has agreed to buy BP’s local business, effectively creates what will be the largest independent producer by volume in Norway, and it will be controlled by Norwegian billionaire Kjell Inge Rokke.
Det norske will pay $140 million in cash to BP, along with the $1.3-billion 30-percent stake BP will have in the new company. The company will focus largely on oil assets.
“This is a milestone in Norway’s oil and gas history,” said Oyvind Eriksen, chairman of Det norske, as reported by the Financial Times.
Related: Natural Gas Is Already Losing To Renewables
“I’m overwhelmed by the reception this deal has received, even from other oil companies on the Norwegian shelf. It is what this shelf needs, and it is in Norway’s interests as an oil-producing nation.”
Norway’s state-run Statoil currently produces some two-thirds of the country’s oil and gas, according to FT, and the emergence of this new company will create strong competition for the first time.
ADVERTISEMENT
By Zainab Calcuttawala for Oilprice.com
More Top Reads From Oilprice.com:
Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…
The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.
Nothing contained on the Web site shall be considered a recommendation, solicitation, or offer to buy or sell a security to any person in any jurisdiction.
Trading and investing carries a high risk of losing money rapidly due to leverage. Individuals should consider whether they can afford the risks associated to trading.
74-89% of retail investor accounts lose money. Any trading and execution of orders mentioned on this website is carried out by and through OPCMarkets.
Merchant of Record: A Media Solutions trading as Oilprice.com