Hydro Oil & Gas
| Company type | Business segment |
|---|---|
| Industry | Petroleum, natural gas |
| Founded | 1965 |
| Defunct | 2007-10-01 |
| Fate | Merged with Statoil to form StatoilHydro |
| Headquarters | Norway |
Area served | Norway, Angola, Canada, Russia, Libya, Sweden, Denmark |
| Products | Oil and gas production, fuel retail |
Hydro Oil & Gas functioned as a business segment within Norsk Hydro, focusing on the petroleum and natural gas industries. On October 1, 2007, it combined with Statoil to establish StatoilHydro.
Operations
The primary oil and gas activities of Hydro were concentrated on the Norwegian continental shelf, supplemented by operations in Angola, Canada, Russia, and Libya. The company operated thirteen oil fields, achieving a daily output of 563,000 barrels of oil equivalent.
Downstream
In the retail sector, Hydro ran fuel stations branded as Hydro in Sweden, while in Norway and Denmark it operated under the joint venture name HydroTexaco alongside Chevron. By 2006, the network encompassed 460 stations in Norway and 550 in Denmark, also including the Uno-X and Rema Bensin brands.
History
Established in 1965, Hydro collaborated with Elf Aquitaine and other partners to create Petronord for exploration activities in the North Sea. It rapidly emerged as a significant operator, managing fields such as Oseberg.
In 1971, the Norwegian government increased its ownership share in Hydro to 51%, with the objective of developing a national oil enterprise. Although Statoil was founded in 1972 as Norway’s official state oil company, the government retained majority ownership of Hydro.
Hydro formed one part of a trio alongside Statoil and Saga Petroleum, benefiting from preferential licensing on the Norwegian continental shelf. While Statoil initially received priority, this dynamic shifted when Hydro obtained control of the profitable Troll field, which substantially strengthened its financial position amid late-1980s market challenges. Under CEO Egil Myklebust, Hydro concentrated its efforts on three main industries: oil and gas extraction, metals (especially aluminium), and agriculture, divesting non-essential assets accordingly.
During the late 1980s, Hydro acquired Mobil's service station networks across Norway, Sweden, and Denmark, rebranding them under its own name. In 1995, it merged its Norwegian and Danish outlets with Texaco to form the joint venture HydroTexaco. This fuel retail chain was sold in 2006 to Reitangruppen and subsequently rebranded as YX Energi.
The purchase of Norway’s third-largest petroleum firm, Saga Petroleum, in 1999 expanded Hydro’s upstream footprint primarily within Norway and the UK (the latter later sold). This acquisition ended the previous three-company arrangement and generated political debate due to regulatory concerns over a partly state-owned company acquiring a private competitor. Nevertheless, the transaction proved financially advantageous, occurring during a period of depressed oil prices followed by steady recovery.
The merger between Hydro and Statoil was announced in December 2006. It received approval from the European Union on May 3, 2007, followed by authorization from the Norwegian Parliament on June 8, 2007, resulting in the creation of a major energy corporation. The Norwegian state retains a 62.5% ownership stake in this new entity. Prime Minister Jens Stoltenberg characterized the union as "the start of a new era," enhancing Norway’s influence within global oil and gas markets.
External links
- Oil companies of Norway
- Defunct oil companies
- Defunct energy companies of Norway
- Norsk Hydro
- Equinor
- Energy companies established in 1965
- Non-renewable resource companies established in 1965
- Non-renewable resource companies disestablished in 2007
- 2007 disestablishments in Norway
- Norwegian companies established in 1965