10 June 2016
Det norske and BP join forces to grow Norway's
leading independent oil and gas producer
Deal creates strategic platform for long-term growth in Norway, combining Det norske's
efficient operating model with BP's experience and technical
expertise
BP and Det norske oljeselskap today announced the creation of Aker BP ASA, an independent oil and
gas company combining the assets and expertise from both companies' Norwegian exploration and production operations to form the
largest Norwegian independent oil and gas producer.
BP group chief executive Bob Dudley commented: "BP and Aker have matured a close collaboration
through decades, and we are pleased to take advantage of the industrial expertise of both companies to create a large independent
E&P company. The Norwegian Continental Shelf represents a significant opportunity going forward and we are looking forward to
working together with Aker to unlock the long term value of the company through growth and efficient operations. This innovative
deal demonstrates how we can adapt our business model with strong and talented partners to remain competitive and grow where we
see long-term benefit for our shareholders."
Under the terms of the proposed transaction, the BP Norge and Det norske businesses will combine
and be renamed Aker BP ASA. Aker BP will be independently operated and listed on the Oslo Stock Exchange. Aker BP will be jointly
owned by current Det norske shareholder Aker (40%), other Det norske shareholders (30%) and BP (30%). BP will also receive a cash
payment of $140 million plus positive working capital adjustments as part of the transaction.
Øyvind Eriksen, chairman of the board of directors in Det norske commented: "Aker BP will leverage
on Det norske's efficient operations, BP's international capabilities and Aker's 175 years of industrial experience. Together, we
are establishing a strong platform for creating value for our shareholders through our unique industrial capabilities, a
world-class asset base, and financial robustness."
The completion of the transaction, which is expected by the end of 2016, is subject to customary
closing conditions, regulatory review and approval by Det norske shareholders. All of BP Norge's roughly 850 employees will
transfer to the combined organization upon completion of the deal.
In addition to the attractive combination of the two companies' Norwegian asset portfolios, Aker
BP will benefit from the combined strength of Det norske's efficient, streamlined operating model and BP's long experience in
Norwegian offshore operations, asset knowledge, technical skills and international experience. The companies believe this new
Norwegian super-independent could organically grow production to more than 250,000 barrels of oil equivalent per day by the early
2020s.
About Det norske
Headquartered in Trondheim, Det norske oljeselskap ASA is a rapidly growing independent
exploration and production company with exploration, development and production activities on the Norwegian Continental Shelf.
Det norske merged with Aker Exploration in 2009 and acquired Marathon Oil Norway in 2014. It employs about 550 people.
Det norske is the operator of producing fields Alvheim, Volund, Vilje and Jette. The company is
also the operator of the large Ivar Aasen development. The company is also a partner in the Johan Sverdrup field, one of the
largest on the Norwegian continental shelf. For more information visit www.detnor.no.
About Aker
Headquartered in Fornebu (Oslo), Aker ASA is a leading Norwegian company that owns interests in
subsidiaries in oilfield services construction and marine sectors. Aker owns 49.9% of Det norske (oil and gas producer) along
with significant ownership stakes in Aker Solutions (oilfield services) and Kvaerner (oilfield construction) amongst other
interests. For more information visit www.aker.no.
About BP Norge
Headquartered in London, BP is one of the world's largest integrated oil
and gas companies with operations in more than 70 countries. BP Norge has been active on the Norwegian continental shelf since
1965 and operates five producing fields comprised of 13 platforms and one floating, production, storage and offloading vessel.
The five fields are the Skarv field in the Norwegian Sea and Valhall, Hod, Ula and Tambar in the North Sea. Headquartered in
Stavanger, BP Norge has approximately 850 employees. For more information visit www.bp.no.
Notes to editors
· Det norske, BP and Aker will host an investor and
analyst call at 08:00 CET (0700 BST), details below.
· Det norske, BP and Aker will host a press conference
at 10:00 CET (0900 BST). A live webcast will be available at www.detnor.no/en.
Further information
· Det norske press office: +47 911 12 475
· BP London press office: +44 20 7496 4076
· Investor call information:
Participant access - dial in 5-10 minutes prior to the start time using
the number and confirmation code.
Confirmation code: 3804762
Telephone numbers:
Norway, local - Oslo: +472350 0486
Norway, national free phone: 800 56053
UK, local - London: +44(0)20 3427 1919
UK national free phone: 0800 279 5736
UK national free phone: 0800 279 4977
USA, local - New York: +1646 254 3388
USA national free phone: 1877 280 2296
Cautionary Statement
In order to utilize the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of
1995 (the 'PSLRA'), BP is providing the following cautionary statement. This press release contains certain forward-looking
statements concerning the combination of BP's and Det norske's Norwegian operations, including with respect to long-term
growth and future projects, the formation and operation of Aker BP ASA and the timing thereof; plans and expectations regarding
employees, expected payments, closing conditions, regulatory review and shareholder approval; and BP's plans and expectations
regarding strategic benefits of the combination including future levels of production and the timing thereof. Actual
results may differ from those expressed in such statements, depending on a variety of factors including changes in public
expectations and other changes to business conditions; the timing, quantum and nature of divestments; the receipt of relevant
third-party and/or regulatory approvals; future levels of industry product supply; demand and pricing; OPEC quota restrictions;
PSA effects; operational problems; regulatory or legal actions; economic and financial conditions generally or in various
countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental
regulations; exchange rate fluctuations; development and use of new technology; the success or otherwise of partnering; the
actions of competitors, trading partners and others; natural disasters and adverse weather conditions; changes in public
expectations and other changes to business conditions; wars and acts of terrorism, cyber-attacks or sabotage; and other factors
discussed under "Risk factors" in our Annual Report and Form 20-F 2015.
This press release contains references to non-proved resources and production outlooks based on
non-proved resources that the SEC's rules prohibit us from including in our filings with the SEC. U.S. investors are urged to
consider closely the disclosures in our Form 20-F, SEC File No. 1-06262. This form is available on our website at www.bp.com. You
can also obtain this form from the SEC by calling 1-800-SEC-0330 or by logging on to their website at www.sec.gov