Deal Insight
Aker BP buys Lundin Energy: what next for the "super" independent?
Report summary
Aker BP has agreed to acquire Lundin Energy's upstream business. At US$15 billion, this is the biggest deal globally in 2021 and Norway's biggest since Statoil's merger with Norsk Hydro in 2006. Consolidation among E&Ps is a megatrend and there is logic to this tie-up. Already a low cost and low carbon producer, the added scale sets Aker BP up for success as one of the industry's most resilient E&Ps. Aker BP will now produce over 400,000 boe/d in 2022, increasing to over 500,000 boe/d in 2028, making it comfortably the second biggest producer in Europe behind only Equinor. The portfolio is underpinned by a joint 31.6% stake in Johan Sverdrup, which makes up over 50% of the value of the combined business.
Table of contents
- Executive summary
- Transaction details
-
Upstream assets
- Portfolio evolution
-
Lundin's key assets
- Johan Sverdrup (20%)
- Edvard Grieg Area (65%, operator)
- Wisting (35%)
- Deal analysis
-
Upsides and risks
- Upsides
- Risks
-
Strategic rationale
- Lundin Energy
- Aker BP
- What next for the combined entity?
- What could Aker BP sell?
- Oil & gas pricing and assumptions
Tables and charts
This report includes 10 images and tables including:
- Executive summary: Table 1
- Market premium to WM NPV & top 10 producers' emissions intensity
- Deal analysis: Table 1
- Deal analysis: Table 2
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Combined production and capex outlook
- Aker BP free cash flow & net debt evolution
- Portfolio by capex, equity and NPV10
- Upstream assets: Table 1
What's included
This report contains:
Other reports you may be interested in
Insight
Russian Federation upstream: seven signposts for the future
The outlook for Russia’s upstream is uncertain. What are the signposts to look for as Russia tries to maximise value from oil and gas?
$1,350
Insight
London breakfast briefing 2023: upstream, CCUS and corporate
Transforming the UK North Sea: the route to Net Zero
$1,350
Insight
Black Sea gas production transforms Turkey’s energy outlook
Turkish delight as Sakarya Phase One launches on schedule.
$1,350
