In 2023, the NCP accepted parts of two complaints against Aker BP and Aker ASA concerning Aker BP’s acquisition of Lundin Energy Norway. The complaints were filed by eight civil society organizations on behalf of around 200,000 South Sudanese people. The organisations were the Civil Society Coalition on Natural Resources, Global Idé, Liech Victims Voices, Norwegian Church Aid, Norwegian People’s Aid, PAX, South Sudan Council of Churches and Swedwatch.
The complainants contended that the Aker companies failed to observe the expectations in the OECD Guidelines when it comes to due diligence, stakeholder engagement and facilitating potential unremediated adverse impacts. They claimed that Lundin Energy was involved in serious and repeated human rights violations in Sudan between 1997 and 2003, and that the merger between Aker BP and Lundin Energy Norway undermined Lundin Energy’s ability to remediate adverse impacts on human rights.
The NCP offered dialogue and mediation, which both parties accepted. Mediation in August 2023 did not result in agreement, and the specific instance was referred back to the NCP for further examination.
The NCP has now reviewed the submissions from both parties and assessed whether the due diligence conducted by Aker BP and Aker ASA in connection with the merger with Lundin Energy’s Norwegian oil and gas business was in line with the expectations set out in the OECD Guidelines.
The NCP has found that while the Aker companies conducted business-related, financial and legal due diligence, which also encompassed some aspects of human rights due diligence, the due diligence did not adequately and independently address the risks of adverse impacts of the transaction on the victims’ right to an effective remedy.
Since Aker BP was the party to the transaction, the NCPs Final Statement focuses on whether this company met the due diligence expectations. In its Final Statement, the NCP recommends Aker BP to carry out human rights due diligence related to the transaction in line with the Guidelines, including meaningful stakeholder engagement and assessment of its role in relation to the potential negative impact of the transaction on the victims’ right to an effective remedy. Based on this due diligence, Aker BP should, where appropriate, seek to take a role in remediation.
The NCP takes note of the fact that the Aker companies have taken positive steps in terms of updating policies with respect to human rights due diligence, also in the context of mergers and acquisitions, and recommends their effective implementation.
Read the NCPs Final Statement on PAX and others vs. Aker BP ASA and Aker ASA here. See other case documents here.
For questions about the Specific Instance, contact NCP Chair Frode Elgesem, ph: + 47 416 96 089.