A group of South Sudanese and European organisations had complained that Aker BP’s $11 billion acquisition had reduced Lundin Energy to a size that it could no longer compensate 160.000+ victims of war crimes in South Sudan between 1997-2003. Lundin Energy, that has been renamed Orrön Energy, is currently in court in Sweden. ‘This is good news worth celebration,’ commented Rev. James Ninrew Dong, who represents the movement of survivors of the oil war in South Sudan.

The ruling by the Norwegian National Contact Point (NCP) sets the standard for mergers and acquisitions in OECD member countries: it determines that impacts on human rights must be taken into account. Aker BP had argued that it has nothing to do with Lundin Energy’s alleged crimes in South Sudan because it acquired a Norwegian legal entity that was not linked to them. It is now decided that all potential impacts of mergers and acquisitions on human rights must be accounted for.

The ruling keeps a window open for justice for the victims. It recommends that Aker BP retroactively carries out human rights due diligence on the transaction, including engaging with stakeholders and “…putting in place possible mitigating or remedial actions.” Aker BP can potentially be held responsible for damages that it is linked to through the acquisition of Lundin’s valuable assets.

All OECD member countries expect their multinational enterprises to comply with the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. NCPs are established to assess complaints of non-observance of the Guidelines. Their recommendations are voluntary, but carry the weight of being endorsed by governments as well as the business community. Both Orrön Energy and Aker BP state that they endorse the Guidelines.

The NCP calls upon Aker BP ‘to engage with Orrön Energy’s main owners to facilitate a process where possible remedial actions are explored.’ The Lundin family, whose head, Ian Lundin, is presently in court in Sweden for complicity in war crimes, owns 1/3 of Orrön Energy. The company’s traditional major shareholders like Handelsbanken, SEB, AP4, Blackrock, and Nordea, may have something to answer for. The ruling also raises questions about Aker BP’s main owners, including the British oil major bp, who endorsed the transaction despite having been warned against its human rights implications.

To its credit, Aker BP has already in 2023 adopted new procedures to integrate human rights due diligence in its M&A due diligence processes.

The NCP statement can be downloaded here. An overview of complaints and responses can be found on the Unpaid Debt page.