Lundin Petroleum AB’s Nomination Committee

AMG-2019-Nom-Com

Lundin Petroleum AB’s Nomination Committee

16 October 2019

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce the composition of the Nomination Committee for the 2020 Annual General Meeting (AGM) to be held on 31 March 2020 in Stockholm.

The Nomination Committee has been formed with the following members:

• Filippa Gerstädt (Nordea Funds)
• Aksel Azrac (Nemesia S.à.r.l.)
• Ian H. Lundin, Chairman of the Board of Directors of Lundin Petroleum

At the Nomination Committee’s first meeting, Aksel Azrac was elected as Chairman of the Nomination Committee.

The Nomination Committee shall make recommendations to the 2020 AGM regarding:

• Election of the Chairman of the 2020 AGM
• Election of members of the Board of Directors, including number of members
• Election of the Chairman of the Board of Directors
• Remuneration of the members of the Board of Directors, distinguishing between the Chairman and other members, and remuneration for Board Committee work
• Election of the auditor and remuneration of the auditor
• Nomination Committee Process for the 2021 AGM, if any amendments are proposed to the Process for the 2020 AGM

Shareholders who wish to present a motion to the Nomination Committee regarding the above-mentioned issues should contact the Chairman of the Nomination Committee, Aksel Azrac, at nomcom@lundin-petroleum.com not later than 20 December 2019.

 

Update on third quarter 2019 financial results and audiocast details for 31 October 2019


Update on third quarter 2019 financial results and audiocast details for 31 October 2019

16 October 2019

Lundin Petroleum AB (Lundin Petroleum) will publish its financial report for the third quarter 2019 on Thursday 31 October 2019. For the third quarter 2019, Lundin Petroleum will recognise a post-tax accounting gain of approximately MUSD 757 in relation to the sale of a 2.6 percent working interest in the Johan Sverdrup project. Lundin Petroleum will also expense pre-tax exploration costs of approximately MUSD 14 and recognise a largely non-cash net foreign exchange loss of approximately MUSD 272.

Exploration costs
For the third quarter of 2019, Lundin Petroleum will incur pre-tax exploration costs of approximately MUSD 14 which will be charged to the income statement and offset by a tax credit of approximately MUSD 11. The exploration costs are mainly related to the dry well on the Rumpetroll prospect located in PL869.

Foreign exchange
Lundin Petroleum will recognise a net foreign exchange loss of approximately MUSD 272 for the third quarter of 2019. The Norwegian Krone weakened against the US Dollar by approximately 7 percent and the Euro weakened against the US Dollar by approximately 4 percent during the third quarter of 2019. The foreign exchange loss is largely non-cash and mainly relates to the revaluation of loan balances at the prevailing exchange rates at the balance sheet date.

Accounting gain on sale of 2.6 percent working interest in Johan Sverdrup
Lundin Petroleum completed the sale of a 2.6 percent working interest in the Johan Sverdrup development project during the third quarter and will recognise a post-tax accounting gain on the transaction of approximately MUSD 757.

Change in under/overlift balances
Lundin Petroleum recognises income based on its sold volume (sales method). Consequently, changes in under/overlift balances are reported as an adjustment to cost valued at production cost including depletion. During the third quarter of 2019, Lundin Petroleum was overlifted by 2.3 Mboepd.

Release of report and audiocast on 31 October 2019
Lundin Petroleum’s financial report for the third quarter 2019 will be published on Thursday 31 October at 07:30 CET, followed by a live audiocast at 09:00 CET where Alex Schneiter, President and CEO, and Teitur Poulsen, CFO, will be commenting on the report and the latest developments in Lundin Petroleum.

Follow the presentation live on www.lundin-petroleum.com or dial in using the following telephone numbers:

Sweden: +46 8 519 993 55
Norway: +47 23 500 211
UK: +44 203 194 05 50
International Toll Free: +1 855 269 26 05

Link : https://lundinpetroleum.videosync.fi/2019-10-31-q3

 

First oil from the Johan Sverdrup field

First oil from the Johan Sverdrup field

5 October 2019

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce first oil from Phase 1 of the Johan Sverdrup field on the Utsira High in the Norwegian North Sea, ahead of schedule and below budget.

The field commenced production on 5 October 2019 and is expected to ramp up quickly as the eight pre-drilled production wells are progressively commissioned. Phase 1 plateau production is expected to be achieved by summer 2020 and will require two to four new wells to be drilled, with the first of these expected to come on stream around the end of 2019.

Phase 1 of the project has been developed as a field centre of four platforms – drilling, processing, living quarters and riser platform. The field has gross recoverable reserves of 2.7 billion barrels of oil equivalent and during Phase 1, Johan Sverdrup will produce 440,000 barrels of oil per day, increasing to 660,000 barrels of oil per day, after Phase 2 of the development commences production in the fourth quarter 2022. At its peak, the field will produce approximately 25 percent of all petroleum production on the Norwegian Continental Shelf.

Johan Sverdrup Phase 1 has been delivered below the original budget, saving to date approximately NOK 40 billion gross at project exchange rates. The field is being operated with power supplied from shore and will be one of the lowest CO2 emitting fields in the world, with CO2 emissions of below 1 kg per barrel, about 25 times less than the world average. Post Phase 1 plateau, operating costs will be below USD 2 per barrel and the full-field break-even oil price, including past investments, is less than USD 20 per barrel.

Equinor AS, is the operator of Johan Sverdrup with a 42.6 percent working interest. The partners are Lundin Norway AS with 20 percent, Petoro AS with 17.36 percent, AkerBP ASA with 11.5733 percent and Total S.A. with 8.44 percent.

Alex Schneiter, President and CEO of Lundin Petroleum comments:

“I am very pleased to announce first oil from Johan Sverdrup, which is truly a transformational moment for Lundin Petroleum. Since we made the discovery in 2010, this field has exceeded all expectations in terms of project execution, resources growth and cost reduction and it is a testament to the hard work from all stakeholders and regulatory authorities, to get the field up and running ahead of schedule and below budget. This is one of the largest industrial projects in Europe, and I would like to thank the operator Equinor, who have done a fantastic job in managing the development of this world class field.

“The genesis of Johan Sverdrup is a realisation of how much value can be generated from an organic growth strategy and with this significant moment in the history of the Company, I would also like to pay tribute to the hard work, dedication and inspired ideas from each business area of Lundin Petroleum and specifically the temerity and tenacity of what a technically driven exploration team can achieve, if they are given the right support and backing.”


Key Johan Sverdrup facts

• Field development project execution – engineering and construction was spread all over the world at 22 main sites.
• Field comprises an area of 200 km2, same size as the City of Stockholm.
• The first phase of the development has taken 70 million man-hours, and more than 12,000 people worldwide have worked every day during the main construction period 2016-2018.
• Total topside weight is ~94,000 tonnes which is comparable with the weight of more than 53,000 Volvo XC60’s.
• Total jacket weight is ~68,000 tonnes which is comparable with the weight of 7 Eiffel towers.
• The field will be operated by power from shore, which will reduce the emissions by more than 620,000 tons CO2 per year, compared to traditional gas turbines offshore, equivalent to more than 310,000 private cars.
• Peak production on Johan Sverdrup will be equivalent to 25% of all Norwegian petroleum production.

 

The third quarterly instalment of the dividend for 2018 of USD 0.37 per share will amount to SEK 3.61 per share

The third quarterly instalment of the dividend for 2018 of USD 0.37 per share will amount to SEK 3.61 per share

26 September 2019

Lundin Petroleum AB (Lundin Petroleum) announces that the third quarterly instalment of the dividend for 2018 of USD 0.37 per share will amount to SEK 3.61 per share, with a total amount of SEK 1.03 billion, corresponding to approximately USD 105 million. 1 The expected payment date for the third quarterly instalment is 7 October 2019.

Information about the third quarterly instalment of the dividend:

Amount per share
(SEK)
Total dividend amount
(SEK)
Ex-dividend dateRecord dateExpected payment date
3.611.03 billion1 October 20192 October 20197 October 2019

In accordance with the updated dividend policy announced by Lundin Petroleum on 30 January 2019, the Annual General Meeting held on 29 March 2019 resolved on a dividend for 2018 of USD 1.48 per share, to be paid in quarterly instalments of USD 0.37 per share.

According to the dividend resolution, before payment, each quarterly dividend of USD 0.37 per share shall be converted into a SEK amount based on the USD to SEK exchange rate published by Sweden’s central bank (Riksbanken) four business days prior to each record date (rounded off to the nearest whole SEK 0.01 per share) and the exchange rate used for the conversion is 9.7563.

Information about the approved dividend is available on www.lundin-petroleum.com.

1 The estimated total amount of the dividend as previously communicated has been reduced as a result of Lundin Petroleum completing the redemption of 16 percent of its shares in issue in August 2019.

 

Johan Sverdrup accelerated start-up schedule

Johan Sverdrup accelerated start-up schedule

5 September 2019

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce an acceleration to the start-up schedule of the Johan Sverdrup development project. The operator now estimates first oil in October 2019 from the previously guided November 2019.

The Johan Sverdrup development project continues to progress well through the final stages of preparation for operations with most of the hook-up and commissioning work now completed. The current focus is on completing the testing of the equipment and systems required for the full-field centre to operate as one installation and as result, the partnership is updating the start-up of production to October 2019.

During phase 1, Johan Sverdrup will produce 440 Mbopd when plateau production is reached by summer of 2020, increasing to 660 Mbopd after phase 2 commences in the fourth quarter 2022. At phase 2 plateau, Johan Sverdrup will contribute up to 25 percent of Norway’s total production of oil and gas, while power from shore gives the field carbon emissions intensity of just below 1 kg CO2 per barrel, which is among the lowest in the world and 25 times lower than the oil and gas industry average.

Lundin Petroleum’s production guidance when Johan Sverdrup Phase 1 reaches plateau during the summer of 2020, is above 150 Mboepd and approximately 170 Mboepd when Johan Sverdrup Phase 2 reaches plateau in 2023. The operator has indicated that operating costs for Johan Sverdrup will be below USD 2 per barrel after reaching plateau for the first phase of the development, which corresponds to Lundin Petroleum’s industry leading low operating cost guidance of between USD 3.4 to USD 4.4 per boe for the portfolio.

 

Completion of the sale of a 2.6 percent stake in the Johan Sverdrup development project

Completion of the sale of a 2.6 percent stake in the Johan Sverdrup development project

30 August 2019

Lundin Petroleum AB (Lundin Petroleum) announces that following regulatory approvals in Norway, the previously announced sale of a 2.6 percent stake in the Johan Sverdrup development project by Lundin Norway AS to Equinor Energy AS has now completed with an effective date of 1 January 2019. The cash consideration for the sale is USD 962 million, which includes a USD 52 million contingent payment on future reserve reclassification.

The completion of the sale, which follows the completion of the redemption of 16 percent of Lundin Petroleum shares in issue, as resolved at the extraordinary general meeting of the company on 31 July 2019 and registered with the Swedish Companies Registration Office in August 2019, concludes all aspects of the transactions agreed with Equinor ASA and Equinor Energy AS announced on 7 July 2019. Following completion of the sale, Lundin Norway AS has a 20 percent working interest in the Johan Sverdrup unit with economic effect as per 1 January 2019 and with the receipt of the cash consideration, the short term bridge facility of up to USD 500 million has been repaid in full and cancelled, and the balance from the sales proceeds will be used to partly repay outstanding amounts under Lundin Petroleum’s USD 5 billion reserve-based lending facility.

 

Reduced number of shares and votes in Lundin Petroleum AB

Reduced number of shares and votes in Lundin Petroleum AB

30 August 2019

Lundin Petroleum AB (Lundin Petroleum) announces that, following redemption of 16 percent of its shares in issue, the total number of shares in issue and votes in Lundin Petroleum as at 30 August 2019 is 285,924,614.

The total number of shares in issue and votes has changed as a result of the reduction of the share capital with retirement of 54,461,831 shares that was resolved upon at the extraordinary general meeting of the company on 31 July 2019 and registered with the Swedish Companies Registration Office in August 2019.

The reduction of shares in issue is pursuant to transactions agreed with Equinor ASA and Equinor Energy AS announced on 7 July 2019.

 

Oil discovery at the Goddo prospect on the Utsira High

Oil discovery at the Goddo prospect on the Utsira High

19 August 2019

Lundin Petroleum AB (Lundin Petroleum) announces that its wholly owned subsidiary Lundin Norway AS (Lundin Norway) has made an oil discovery at exploration well 16/5-8s, targeting the Goddo prospect in PL815 approximately 14 km South of the Edvard Grieg field in the Norwegian North Sea.

The main objective of the well was to prove oil in porous basement similar to what is found in the Rolvsnes discovery to the North West. The well encountered weathered and fractured basement in an estimated gross oil column of 20 meters. Extensive coring and data acquisition was performed and the reservoir displays similar characteristics as found in Rolvsnes, but the two discoveries are not connected.

The preliminary gross resources from this well are estimated to be between 1 and 10 million barrels of oil equivalent (MMboe), however there is clear upside potential in the larger Goddo area and surrounding prospective basement.

The forward appraisal and commercialisation strategy for the Utsira High basement play will be based on evaluation of the production performance from the Rolvsnes extended well test where production is set to commence in mid-2021, as well as the information collected at Goddo and surrounding well data. Two horizontal wells in the northern part of the Edvard Grieg field already have production contribution from basement, and the Tellus East discovery announced earlier this year has similar reservoir to Rolvsnes and Goddo and will be produced as part of a future Edvard Grieg infill programme.

The Goddo well was drilled by the Leiv Eiriksson semi-submersible drilling rig. Lundin Norway is the operator of PL815 with a 60 percent working interest, and the partners are Concedo and Petoro with 20 percent interest each. The Leiv Eiriksson rig will now be used by operator ConocoPhillips Skandinavia for a three well exploration campaign to the North of the Utsira High. Lundin Petroleum has a 20 percent working interest in two of these wells; Enniberg and Hasselbaink both located in PL917, due to spud in Q4 2019.

Alex Schneiter Bloomberg TV interview

Alex Schneiter Bloomberg TV interview

5 August 2019

Listen to Bloomberg TV interview with Alex Schneiter, President and CEO, delivering strong quarterly results and sharing his thoughts on Lundin Petroleum’s future developments.