Norwegian oil companies Hydro and Statoil have agreed to merge to create a Norwegian energy giant and the world's largest offshore oil operator.
Subject to shareholder approval, which is confidently expected, the new company 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.
Hydro’s shareholders will hold 32.7% and Statoil’s shareholders will hold 67.3% of the new company. Hydro’s shareholders will receive 0.8622 shares in the new company for each Hydro share and continue as owners of Hydro. Meanwhile, Statoil shareholders will maintain their holdings in the new company on a one-for-one basis.
Final closing on the merger is expected to be in the third quarter of 2007.
This is an historic milestone. The time is right for one strong Norwegian-based energy champion. We are creating a stronger and more competitive company. Combining the best of both organizations, we will significantly improve our competitive position internationally and promote long-term vitality of the Norwegian Continental Shelf, said Helge Lund, president and CEO of Statoil.