Statoil, Norsk Hydro to Merge

Two Norwegian energy giants Statoil and Norsk Hydro are likely to merge their offshore 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 merger would have total oil production of 1.9 million barrels per day, and proven oil and natural gas reserves of 6.3 billion barrels.

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%.