Aker BP

M&A Activity • Jun 15, 2016

Extended notice: Det norske oljeselskap ASA and BP Norge AS merge to create a leading independent E&P company on the NCS

Extended notice: Det norske oljeselskap ASA and BP Norge AS merge to create a leading independent E&P company on the NCS

Reference is made to announcement made on 10 June 2016. This announcement is

drafted and published in accordance with section 3.4 of the Continuing

Obligations for listed companies.

On 10 June 2016, Det norske oljeselskap ASA (Det norske) entered into an

agreement with BP p.l.c. (BP) to merge with BP Norge AS (BP Norge) through a

share purchase transaction. The company will be named Aker BP ASA (Aker BP) and

will be headquartered at Fornebuporten, Norway. Aker BP will be jointly owned by

Aker ASA (Aker) (40%), BP (30%) and other Det norske shareholders (30%). The

Sellers are Amoco Norway Oil Company and BP Global Investments Ltd, wholly-owned

subsidiaries of BP.

As part of the transaction, Det norske will issue 135.1 million new shares based

on NOK 80 per share to BP as compensation for all shares in BP Norge, including

assets, a tax loss carry forward of USD 267 million (nominal after-tax value)

and a net cash position of USD 178 million (the Transaction). In parallel, Aker

will acquire 33.8 million shares from BP at the same share price to achieve the

agreed-upon ownership structure.

BP Norge is the operator on Valhall (35.95%), Hod (37.50%), Ula (80.00%), Tambar

(55.00%) and Skarv (23.84%). BP Norge had a 2015 production of approximately

62,000 barrels of oil equivalents per day and had proven and probable (P50)

reserves of 225 million barrels of oil equivalents at year-end 2015. BP Norge AS

had total revenues of NOK 7.9 billion in 2015 and a pre-tax loss of NOK 0.9

billion. Further financial figures are included in the attachment.

As of 31 December 2015, BP Norge AS had 870 employees. Det norske expects to

take out some organizational synergies as a result of the Transaction. The Board

of Directors of BP Norge currently consists of P. J. Mather (Chairman), J. J.

Norheim, C. I. Minos, K. Ekroll, M. J. Thomas, Ø. Holstad, C. Eikeberg and I.

Haugeberg. The Managing Director of BP Norge is Jan Norheim.

The closing date for the Transaction is expected to occur in the third quarter

2016. Completion of the Transaction is subject to standard conditions, including

approval by the Norwegian Ministry of Petroleum and Energy and the Norwegian

Ministry of Finance, and competent competition authorities. The Parties will

also carry out a confirmatory due diligence prior to closing, with a right to

terminate in the event of material findings. An extraordinary general meeting of

Det norske will be scheduled to approve the capital increase and share issue as

part of the Transaction and other necessary corporate changes.

After the Transaction, Aker BP will hold a portfolio of 97 licenses on the

Norwegian Continental Shelf, of which 46 are operated. The combined company will

hold an estimated 723 million barrels of oil equivalent P50 reserves, with a

2015 joint production of approximately 122,000 barrels of oil equivalent per

day. Det norske and BP Norge had at the end of 2015 a combined workforce of

approximately 1,400 employees.

Aker BP will have a balanced portfolio of operated assets and a high quality

inventory of non-sanctioned discoveries, with potential to reach production

above 250,000 barrels of oil equivalent per day in 2023. The combined company

has the ambition to leverage on Det norske's lean and nimble business model and

will gain access to state-of-the-art technological know-how and capabilities,

through the industrial collaboration with BP. The Transaction will strengthen

Det norske´s balance sheet and is credit accretive through a 35% reduction in

net interest-bearing debt per barrel of oil equivalent of reserves. Aker BP aims

to introduce a quarterly dividend policy. The first dividend payment is planned

for the fourth quarter of 2016, conditional upon the approval of creditors.

Øyvind Eriksen will remain Chairman of the Board of Directors and Karl Johnny

Hersvik Chief Executive Officer of the combined company. There are no special

agreements or arrangements with the directors or executive management of Det

norske in connection with the transaction.

Contacts:

Investor contact: Jonas Gamre, VP Investor Relations, tel.: +47 971 18 292

Media contact: Rolf Jarle Brøske, SVP Communications, tel.: +47 911 12 475

About Det norske:

Det norske is a fully-fledged E&P company with exploration, development and

production activities on the Norwegian Continental Shelf (NCS). We are building

one of Europe's largest independent E&P companies.

Det norske is the operator of the producing Alvheim field and for the Ivar Aasen

field development. In addition, the company is partner in the Johan Sverdrup

field. Det norske has an active exploration programme on the Norwegian shelf and

an ambitious strategy for growth.

Det norske's headquarters are located in Trondheim, with branch offices in

Stavanger, Oslo and Harstad. Det norske is listed on Oslo Børs with ticker

'DETNOR'. More about Det norske at www.detnor.no/en/.

This information is subject to disclosure requirements pursuant to section 5-12

of the Norwegian Securities Trading Act.