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| Version 2 | Version 3 |
|---|---|
| Norwegian firms create oil giant | Norwegian firms create oil giant |
| (19 minutes later) | |
| Energy firms Statoil and Norsk Hydro have unveiled plans to merge their oil and gas operations, creating a global industry giant. | |
| The Norwegian companies said the deal would create the world's largest offshore oil operator. | The Norwegian companies said the deal would create the world's largest offshore oil operator. |
| The merged operator would have total oil production of 1.9 million barrels per day, and proven oil and natural gas reserves of 6.3 billion barrels. | The merged operator would have total oil production of 1.9 million barrels per day, and proven oil and natural gas reserves of 6.3 billion barrels. |
| Norway is the world's third-largest crude oil exporter. | Norway is the world's third-largest crude oil exporter. |
| Shares in Norsk Hydro leapt by more than 24% in morning trading on the Oslo stock exchange, while Statoil's shares rose by almost 7%. | Shares in Norsk Hydro leapt by more than 24% in morning trading on the Oslo stock exchange, while Statoil's shares rose by almost 7%. |
| 'New era' | 'New era' |
| STATOIL Founded in 1972Employs 25,600 staffAccounts for 60% of Norwegian petroleum productionRevenues of $63bn in 2005 | STATOIL Founded in 1972Employs 25,600 staffAccounts for 60% of Norwegian petroleum productionRevenues of $63bn in 2005 |
| Statoil would dominate the new offshore operator if the deal goes ahead. | Statoil would dominate the new offshore operator if the deal goes ahead. |
| Statoil shareholders would hold 67.3% of the combined offshore operator, with Norsk Hydro shareholders owning the remainder. | Statoil shareholders would hold 67.3% of the combined offshore operator, with Norsk Hydro shareholders owning the remainder. |
| NORSK HYDRO Founded in 1905Employs 33,000 staffOperates 13 oil and gas installations in NorwayRevenues of $28bn in 2005 | NORSK HYDRO Founded in 1905Employs 33,000 staffOperates 13 oil and gas installations in NorwayRevenues of $28bn in 2005 |
| The Norwegian government, which is a key shareholder in both companies, welcomed plans to merge their operations. | The Norwegian government, which is a key shareholder in both companies, welcomed plans to merge their operations. |
| "This is the start of a new era," said Norway's Prime Minister Jens Stoltenberg. "The merger is an excellent foundation for meeting the challenges facing the oil and gas industry." | "This is the start of a new era," said Norway's Prime Minister Jens Stoltenberg. "The merger is an excellent foundation for meeting the challenges facing the oil and gas industry." |
| Statoil and Norsk Hydro have been facing fierce competition from rivals such as Russia's state-run oil and gas operator Gazprom. | Statoil and Norsk Hydro have been facing fierce competition from rivals such as Russia's state-run oil and gas operator Gazprom. |
| Under the proposed deal, the Norwegian government would hold 67% of shares in the new operator. | Under the proposed deal, the Norwegian government would hold 67% of shares in the new operator. |
| Ambition | Ambition |
| Statoil and Norsk Hydro's bosses say the merger deal makes sense | Statoil and Norsk Hydro's bosses say the merger deal makes sense |
| In a joint statement, the companies said the merged operator would be "a highly competent and financially strong Norwegian-based energy champion". | In a joint statement, the companies said the merged operator would be "a highly competent and financially strong Norwegian-based energy champion". |
| "The recommended merger is driven by an ambition to grow in Norway and internationally," the companies said. | "The recommended merger is driven by an ambition to grow in Norway and internationally," the companies said. |
| "The industry faces an increasingly challenging international landscape. To merge now makes perfect sense." | "The industry faces an increasingly challenging international landscape. To merge now makes perfect sense." |
| Carnegie oil analyst John Olaisen described the merger plan as "very positive" for both companies. | Carnegie oil analyst John Olaisen described the merger plan as "very positive" for both companies. |
| Statoil, which is based in Norway's western port of Stavanger, employs more than 25,600 people in 31 countries. | Statoil, which is based in Norway's western port of Stavanger, employs more than 25,600 people in 31 countries. |
| Oslo-based Norsk Hydro employs 33,000 people in 40 countries. | Oslo-based Norsk Hydro employs 33,000 people in 40 countries. |
| The companies said they hoped to complete the merger during the second half of 2007. | The companies said they hoped to complete the merger during the second half of 2007. |