Aker BP to buy Lundin energy exploration and production business for $14 billion

Lundin Energy Norway will operate as a wholly-owned subsidiary of Aker BP and will be renamed ABP Norway AS, according to a report from Offshore Engineering on July 1

Aker BP has completed a $14 billion cash-and-stock acquisition of Lundin Energy's oil and gas business, creating an exploration and production company purely focused on the Norwegian continental shelf

The combined entity is said to have a "world-class" asset base, low operating costs, low carbon emissions, and increased and sustainable dividends

Shareholders of Lundin Energy's exploration and production operations will receive $2.

Shareholders will also retain their stake in Lundin Energy's renewable energy business

From 1 July 2022, Norwegian Lundin Energy will operate as a wholly owned subsidiary of Aker BP

Karl Johnny Hersvik, chief executive of Aker BP, said: "Our aim is to create the world's best oil and gas company, with low costs, low emissions, profitable growth and attractive dividends

Lundin plans to change the name of the renewable energy business to Orrön Energy AB, effective 1 July 2022

　　After the deal closes, Lundin Energy shareholders will own 43% of Aker BP

　　Nick Walker, President and CEO of Lundin Energy, said: "Creating value is at the heart of our business, and this combination is a unique opportunity to create a world-leading exploration and production company with significant scale, production and output over the next decade.

　　Aker BP has unveiled plans to invest more than NOK 150 billion ($15.

　　During this period, the company will also drill about 180 new wells and conduct exploration projects