Aker BP

M&A Activity • Oct 16, 2014

Det norske becomes one of the largest listed independent E&P companies in Europe

Det norske becomes one of the largest listed independent E&P companies in Europe

Det norske oljeselskap ASA (Det norske) has finalised the acquisition of

Marathon Oil Norge AS. After the integration Det norske becomes a large

and robust E&P company with activities within exploration, development

and production.

In 2013, combined production from the two companies amounted to

approximately 84 000 barrels of oil per day, making Det norske one of

the largest listed independent E&P companies in Europe in terms of

output. Following the integration, Det norske will have close to 500

employees.

- The acquisition entails that we become a large operator and a robust

company with ambitions on the Norwegian shelf. We are acquiring a solid

portfolio with high production rates and significant operational

experience that adds to Det norske's exploration and development

capabilities. Consequently, there will be no redundancies, and we will

retain the Stavanger office, says chief executive Karl Johnny Hersvik.

On 2 June 2014, Det norske announced that it had entered into an

agreement to acquire Marathon Oil Norge AS for a cash consideration of

USD 2.1 billion. The acquisition was financed through a combination of

equity and debt. The new USD 3 billion reserve-based lending (RBL)

facility is now in place and the USD 1 billion revolving credit facility

(RCF) has been repaid.

From the date of entering into the agreement, the two companies have

completed an ambitious integration process in just four and a half

months.

- It has been important to get the new organisation rapidly in place and

establish new management systems as well as a new IT structure. At the

same time, we have ensured safe and reliable operation of producing

fields and development projects, says Hersvik.

The transaction has been subject to normal terms and conditions,

including approvals from the relevant Norwegian and European Union

authorities.

- We have worked persistently with applications and approvals, and we

have met all requirements and conditions. We have been granted all the

required approvals for the acquisition from the authorities, says

Hersvik.

A new executive management team has been appointed, and the change took

effect from 15 October. Karl Johnny Hersvik will continue as the chief

executive officer and will be joined by eleven senior vice presidents in

the company's new executive management team. The new senior vice

presidents are presented on the company's internet site.

Contacts:

Investor Relations Manager, Jonas Gamre

Tel.: +47 971 18 292, e-mail: jonas.gamre@detnor.no

Press Contact, Kurt Michelsen

Tel.: +47 41 63 52 44, e-mail: kurt.michelsen@detnor.no

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'.