Norway’s Aker BP has agreed to buy the Norwegian subsidiary of US firm Hess, Hess Norge, for US$2 billion that will see Aker BP become the sole owner of the Valhall and Hod fields in Norway's continental shelf.
The deal will see Aker BP acquire Hess Norge’s interests in the Valhall (64.05 per cent) and Hod (62.5 per cent) fields. Following the transaction, Aker BP said in a statement that it would look to sell or swap a minority interest in the fields to partners to target the upside potential in the area.
The company will finance the deal through its existing long-term reserve based lending facility as well as the issue of $500 million in new equity. The proposed equity issue has already been backed by Aker and BP which will subscribe for 40 per cent and 30 per cent of the shares to be issued, respectively.
The deal is subject to regulatory approvals but is expected to close before the end of the year.
Aker BP’s Chairman, Øyvind Eriksen commented: “The acquisition of Hess Norge is another move as a part of our ambition to grow the company. Through the equity issue, we are enabling Aker BP to grow further on the Norwegian Continental Shelf.”
CEO of Aker BP, Karl Johnny Hersvik said: “Aker BP has a clear ambition to be the leading independent offshore E&P company. This transaction is an important step in that direction. Acquiring this portfolio gives Aker BP a deeper exposure to one of our core areas. Taking full ownership and control allows Aker BP to pursue upsides more aggressively. As the operator of the Valhall/Hod field, Aker BP knows the area very well.”