Aker BP has entered into an agreement to acquire Hess Norge for the cash consideration of USD 2.0 billion.
The transaction includes Hess Norge’s interests in the Valhall (64.05 per cent) and Hod (62.5 per cent) fields in which Aker BP becomes the sole owner.
Aker BP will also assume Hess Norge’s tax positions, which include a tax loss carry forward with a net nominal after–tax value of USD 1.5 bln, as booked in Hess Norge’s 2016 annual accounts.
The transaction will be financed through Aker BP’s existing long-term Reserve Based Lending bank facility, and by the issuance of USD 500 million in new equity.
Aker BP’s chairman, Øyvind Eriksen said: “The acquisition of Hess Norge is another move as a part of our ambition to grow the company. This investment allows Aker BP to raise the dividend level to USD 350 million per year with first uplift planned for fourth quarter of 2017. Through the equity issue, we are enabling Aker BP to grow further on the Norwegian Continental Shelf.”
Karl Johnny Hersvik, CEO of Aker BP, added: “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 fields, Aker BP knows the area very well.”
Following the transaction, Aker BP will own 100 per cent of the Valhall and Hod fields. Aker BP will subsequently seek to sell or swap a minority interest in the fields to partners who want to work together with Aker BP to proactively target the upside potential in the area, the company said.
The transaction is subject to customary conditions for completion, including approval by the Ministry of Oil and Energy, Ministry of Finance and relevant competition clearance. The effective date of the transaction will be January 01, 2017, and closing is expected by the end of 2017.