Statoil CEO Helge Lund has suggested that CO2 could be the new name for the combined entity created out of the mega-merger between Statoil and fellow Norwegian energy giant Hydro, PetrolWorld has reported.

<p>Statoil and Hydro agreed in December 2006 to merge their businesses to create a new Norwegian oil champion. As part of the deal to combine their operations, the two companies agreed to create a new name for the enlarged business.<br /><br />It is speculated that Hydro insisted on the move because it did not want the deal to appear to be just an acquisition by larger partner Statoil.<br /><br />According to the PetrolWorld report, CO2 would represent an abbreviation of the name Continental Oil: 2.<br /><br />The combined outfit will be the world&#0039;s largest offshore oil operator. It will have a combined production of 1.9 million barrels per day in 2007 and proven oil and gas reserves of 6.3 billion barrels of oil equivalents.</p>