The Norwegian Crown will own 62.5% of the new company. Norsk Hydro's aluminum production and electricity generating assets will remain part of a separate company.
Bloomberg describes the transaction this way:
Statoil ASA, Norway's state-controlled oil company, agreed to buy Norsk Hydro ASA's energy business for about $28 billion as supplies from domestic fields peak and competition intensifies for drilling contracts from Russia to Venezuela.The Norwegian announcement moves the two corporations in a direction opposite to the one taken by the Williams administration which earlier this year expanded the mandate of the Crown-owned hydroelectricity company to allow it to engage in any economic activity approved by cabinet. Williams has stated repeatedly that he has been following the Norwegian model in creating the stated-owned megacorporation.
Implications for the Newfoundland and Labrador offshore are unclear at this time. Norsk Hydro has interests in Hibernia, Terra Nova, White Rose and the stalled Hebron project.
