The merger of Aker BP ASA and Lundin Energy will become Norway's second-largest oil and gas producer, with an annual output of more than 400,000 boe/d expected next year.
The combined business will run six key production hubs on the Norwegian continental shelf, with more growth projected from the North Sea's 500-million-bbl North of Alvheim Krafla Askja (NOAKA), Valhall new process and wellhead platform, and 77-million-bbl King Lear projects.
It will also be a partner in the Wisting oil development in the Barents Sea and the second-largest owner of the Johan Sverdrup oil field (31.6 percent). These projects, some of which have low break-even costs, have the potential to boost the new group's production to almost 500,000 boe/d by 2028.
After awarding front-end engineering and development contracts relating to field development of NOA Fulla in the area's southern half earlier this year, Aker BP plans to make a final investment decision on NOAKA in late 2022.
According to the corporations, the combined group would have reserves of more than 2.7 billion boe and potentially generate operational efficiencies of up to USD 200 million per year.
Lundin's onshore renewable assets in the Nordic countries, which are expected to generate 600 GWhr/year once fully operational, are not included in the planned combination and will continue to operate as a separate renewable energy firm.
The combined company would be run by Aker BP's executive management team, should Norway's regulators approve the merger. All employees working for Lundin Energy's oil and gas assets in Norway will be transferred to Aker BP, which will be based in Oslo.