BP Has No Plans to Divest Norway Business

BP has no plans to divest its 30% stake in Norwegian independent Aker BP - the company 30%-owned by BP,40% by Aker ASA group and 30% by other shareholders.

BP CFO Brian Gilvary was asked at its 3Q analysts meeting if the asset might be among non-core assets that the oil major could divest. He said he would not make any such comment on a particular asset but then proceeded to do just that: “Aker BP is one of the most innovative investments we have made to take what was a late life asset, and go and join with partners that we trust well and with whom we have a long-term relationship. What it has created is a huge amount of value for each shareholder.”

“I can only say positive things about Aker BP. On a personal basis, it certainly wouldn’t be something we’d look at. But we never say never with any asset,” he continued: “Aker BP is a great investment but certainly wouldn’t be one that we are looking to sell.”

“To be clear, we don’t have any deficit to make up in our disposal programme,” Gilvary added: “We have a suite of assets for disposal that would be non-strategic in terms of long-term hold position, or things we believe would be of more value in the hands of others. Aker BP wouldn’t fall into either of those two tests. We’re very happy with Aker BP.”   Earlier this month BP and Aker BP signed a technology pact.

Others have followed BP’s model of integrating with local Norwegian partners since, most notably Eni Norge merging with Point Resources to form Var Energi. Other cases of Norwegian assets mergers include Spirit Energy (Centrica with Bayerngas) and the planned Wintershall DEA merger. (The banner photo shows the Skarv gas field production ship, courtesy of Aker BP)