Shareholders approve Statoil - Norsk Hydro merger
07 Jul 2007
Shareholders of Norway's oil giant Statoil and the smaller but older Norsk Hydro have approved the planned merger of the energy operations of the two companies that will create the world's largest offshore oil and gas operator worth almost $30 billion. (See: Norwegian oil firms' merger to create world's largest offshore operator)
Norway is the world's third-largest crude oil exporter, though dwindling reserves in its own waters means it has to compete petroleum resources around the world and a merged company would be able to compete more aggressively for foreign fields an extremely competitive area.
The merged entity will be called StatoilHydro and will be able to produce 1.9 million barrels of oil a day. The Norwegian government, a key shareholder in both companies, would hold 67 per cent in the merged entity.
"Internationally there is no doubt that we will be more competitive by being larger," said Statoil chief executive Helge Lund, who will become head of the new company. He stressed that production from Norway's oil reserves in the North Sea would remain the focus of operations.
The merger is due to be completed in October.
Earlier in June 1999 Norsk Hydroand Statoil had joined hands to gain control of Saga Petroleum, also of Norway, defeating Elf Aquitaine of France in a takeover war.
