Lundin Energy and AkerBP have reached an agreement to merge.
Lundin Energy and AkerBP have reached an agreement to merge.
The combined company will hold more than 2.7 billion barrels of oil equivalent (boe) of reserves and resources; production in 2022 of more than 400 Mboepd with potential to grow to 500 Mboepd by 2028; and 31.6% ownership in the Johan Sverdrup field.
Shareholders of Lundin Energy will hold 43% of the total number of shares and votes in AkerBP (based on a total of 360,113,509 shares and votes in AkerBP).
The boards of both companies recommend that shareholders vote in favour of the proposal. Lundin Energy’s largest shareholder, the Lundin Family, representing 33.39% of shares, has signed an irrevocable undertaking to vote in favour of the proposal at the AGM 2022. In addition, Aker Capital AS and BP Exploration Operating Company Ltd, who control 64.99% of the shares and votes in AkerBP, have irrevocably undertaken to vote in support of the combination proposal at the general meeting of shareholders of AkerBP.
Ian Lundin said: ‘This is a unique opportunity to create a future proof independent E&P company, exposing shareholders to a business with significant scale, production growth and strong free cashflow into the next decade. Coupled with this is a world-class asset base which will have one of the lowest cost and lowest CO2 emissions per barrel in our industry.
As part of this transaction, Lundin’s renewable assets, representing a power generation of 600 GW hours per annum once built out, will remain as a standalone renewable energy business. The renewable business will be debt free and will have a cash balance of $130 million.
AkerBP’s executive management team will run the combined company. All personnel of Lundin Energy’s oil and gas assets in Norway will remain employed by Aker BP upon completion, based in Oslo, Norway.’
It is hoped that the merger will be completed in late Q2/early Q3 2022.
