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OSLO/LONDON, June 10 (Reuters) - Oil companies BP andDet norske have agreed to merge their Norwegianbusinesses in a $1.3 billion share deal to cut costs, increaseprofitability and challenge Statoil's Norwegianoffshore dominance.
The new venture will offer BP an opportunity to tap into newoil production capacity and reserves in the next decade aftercutting its exploration budget in recent years to counter theslump in oil prices.
The deal will strengthen Det norske's position as thebiggest independent operator of Norwegian oil platforms behind state-controlled Statoil, which is responsible for 60 percent ofthe Nordic country's oil and gas output.
"BP and (Det norske majority shareholder) Aker have matureda close collaboration through decades and we are pleased to takeadvantage of the industrial expertise of both companies tocreate a large independent E&P (exploration and production)company," BP Chief Executive Bob Dudley said in a statement.
A quarterly dividend policy would be introduced by themerged entity, to be called Aker BP, with the first payment tobe planned for the fourth quarter of 2016, conditional upon theapproval of creditors, the companies said. (Reporting by Stine Jacobsen in Oslo and Ron Bousso in London;Writing by Gwladys Fouche in Oslo; Editing by David Goodman)
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