Norway Oil Major To Buy US Firm

Norwegian offshore oil major Hydro ASA is likely to acquire Spinnaker Exploration Company for $2.45 billion. The acquisition will substantially boost Hydro's presence and growth potential in the U.S. Gulf of Mexico.

The acquisition of U.S. Spinnaker Exploration will significantly raise Hydro's international oil and gas production. Following completion of the acquisition, Hydro expects annual international production growth in 2005-2008 of approximately 40 percent.

Under the terms of the agreement, approved by the Board of Directors of both companies, Hydro will pay $65.50 per share in cash for all outstanding common shares and options of Spinnaker Exploration. In addition to the total purchase price for the shares of approximately US$2.45 billion, Hydro will assume approximately US$ 110 million in net interest-bearing debt. The acquisition is subject to approval by Spinnaker Exploration shareholders, and compliance with notification provisions of U.S. antitrust laws and other customary regulatory approvals.