Merger Creates Norway's Second Biggest Oil Company

Pertra ASA and Det Norske Oljeselskap ASA (NOIL) recently announced a merger between the two companies.

Operating under the name of Det Norske Olijeselskap ASA (NOIL), the new company will become Norway’s second largest oil and gas operator, only behind the newly merged StatoilHydro.

Exclusively operating in Norway, the newly combined company will operate 17 offshore licenses with plans for 20 exploration wells in the next three years.
Although the merger is conditional, the union is expected to be completed by November 2007.

Under the agreement, DNO ASA will hold the largest number of shares in the new company, a maximum of 39.97 percent. Pertra will buy all or the majority of the outstanding shares of NOIL, at a 3:1 NOIL to Pertra ratio.

Pertra is listed and traded on the Oslo stock exchange as “PERTRA,” while NOIL is registered as “NOIL.”

Financial analysts have predicted that this merger will encourage an increase in mergers and acquisitions among companies on the Norwegian Continental Shelf.

With its headquarters in Trondheim, the new company will also conduct business out of Oslo. Erik Haugane, the CEO of Pertra, will serve as CEO of the new NOIL; and the chairman of Pertra, Kaare M. Gisvold, will continue as chairman of the new company.

With an initial staff of 80, the company plans to grow that number to 160 in the next two years.

Shareholders will elect seven directors and employees will elect two directors (one from Oslo and one from Trondheim).