Oil companies BP and Det norske have agreed to merge their Norwegian businesses in a $1.3 billion all-share deal to cut costs, challenge Statoil's dominance of the local industry and look for more acquisitions. The new venture, which could produce over a tenth of Norway's oil output, will offer BP an opportunity to tap into new oil production and reserves in the next decade after it cut back exploration in recent years.
Norway's seas, unlike Britain's, are offering more opportunities for exploration, with authorities opening up new acreage in the Arctic. In particular, BP will gain exposure to the giant Johan Sverdrup field, the largest oil find in Norway in 30 years, in which Det norske has a 11.57 percent stake, and which is expected to start production in late 2019.