BP and Det norske agree $1.3 billion Norwegian oil merger

OSLO/LONDON (Reuters) - Oil companies BP and Det norske have agreed to merge their Norwegian businesses in a $1.3 billion (899.53 million pounds) share deal to cut costs, increase profitability and challenge Statoil's Norwegian offshore dominance. The new venture will offer BP an opportunity to tap into new oil production capacity and reserves in the next decade after cutting its exploration budget in recent years to counter the slump in oil prices. The deal will strengthen Det norske's position