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Merger between Statoil and Hydro

The Norwegian companies Hydro and Statoil are merging their oil and gas operations to form the world’s largest offshore operator.

20/12/2006 :: The new company, which has not yet been named, will be the twelfth largest oil and gas company in the world.

It will have operations in nearly 40 countries worldwide and 31 000 employees. The forecasted total production for 2007 is 1.9 million barrels a day, and the proven oil and gas reserves amount to 6.3 billion barrels of oil equivalents. Hydro will continue as a global aluminium company.

“This is the start of a new era. We are creating a global energy company and strengthening Norway’s oil and gas industry,” said the Norwegian Prime Minister, Jens Stoltenberg, in a press release.

“The merger creates a more forceful and competitive company. The Government sees the recommended merger as industrially and strategically well founded,” he continued. 

The Norwegian state will own 62.5 per cent of the new company. The Government’s goal is to be a long-term owner, and it intends to gradually increase its ownership stake to 67 per cent.

The merger, which has to be approved by the corporate assemblies of the two companies and by the authorities, is expected to take place in the third quarter of 2007.

The new company will also be a world leader in terms of technology and project implementation, and a giant in relation to gas deliveries to Europe.

Both companies are well known for being among the best in the industry with regard to environmentally sound technology and corporate social responsibility.

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“We are creating a global energy company and strengthening Norway’s oil and gas industry,” said the Norwegian Prime Minister, Jens Stoltenberg.Photo: Bjørn Sigurdsøn