[2] Saga Petroleum was founded in 1972 as a private initiative based on a political wish to have three Norwegian oil companies.

The three Norwegian oil companies were to ensure that petroleum competence was established in Norway.

Not long before the merger Saga had acquired the Kuwait based Santa Fe Exploration for US$1.23 billion.

Originally Elf Aquitaine tried to purchase Saga, but eventually Norsk Hydro acquired it.

Saga's financial position had become weak due to the low oil price and the badly timed acquisition of Santa Fe, and oil hedging.