Norwegian oil companies plan merger

OSLO, Norway – Norwegian oil companies Statoil ASA and Norsk Hydro ASA announced plans Monday to merge their offshore oil and natural gas units in a deal they said would create the world’s largest offshore oil operator.

The Norwegian government, which owns 71 percent of Statoil and 44 percent of Norsk Hydro, reacted positively to the announcement, which sent Hydro shares soaring almost 25 percent. The government would hold 62.5 percent of the merged company.

Statoil is already the key operator on the offshore fields that make Norway the world’s third largest oil exporter, and Norsk Hydro is also a major player.

“The new company will be a highly competent and financially strong Norwegian-based energy champion, well-positioned to ensure continued domestic excellence and pursue international business opportunities for long-term growth,” the two company boards said in a joint statement.

AP