Norway’s Det norske oljeselskap and Aker Exploration are to merge, a move that creates Norway’s second-largest E&P player, the companies announced today.

The combined company will be able to grow more rapidly, both organically and by adopting a forceful approach to continued restructuring in the industry, Aker exploration said in a statement.

The merger will enable the companies to work on developing the Norwegian continental shelf, the statement said.

The company will retain the name Det norske oljeselskap and will be headed by CEO Erik Haugane.

The agreed conversion ratio means that Det norske‘s shareholders will own 82% of the merged company, while Aker Exploration‘s shareholders will own 18%.

Aker ASA will be the largest shareholder in the company, with about 30% of the shares, based on Aker‘s ownership in the two companies today.