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Lundin Energy audiocast – Q1 report 2020 presentation

Lundin Petroleum audiocast - Q3 report 2019 presentation

Lundin Energy audiocast – Q1 report 2020 presentation

30 April 2020

Listen to Alex Schneiter, President and CEO, and Teitur Poulsen, CFO, commenting on the report at a live audiocast, held on Thursday 30 April at 09:00 CEST.

Follow the presentation live on www.lundin-energy.com or dial in using the following telephone numbers:
Sweden    +46 8 56642651
UK     +44 3333000804
United States    +1 6319131422
Norway    +47 23500243

Access Pin : 58812582

 

Link : https://lundinenergy.videosync.fi/2020-04-30-q1

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3 month report 2020
30.04.2020, 0.00 KB

CEO Letter to Shareholders

CEO letter to shareholders

CEO Letter to Shareholders

23 March 2020

Alex Schneiter, President and CEO of Lundin Petroleum AB (Lundin Petroleum) has written an open letter to shareholders in regard to current market conditions, measures taken to mitigate any impact from the current Covid-19 pandemic on operations and the resilience of the Company’s strategy and business model to low commodity prices.

Key excerpts:

The Company remains resilient against low oil prices:

  • Average breakeven oil price to achieve free cash flow neutrality before debt repayment and dividends for the next seven years is c. USD 17 per barrel of oil equivalent¹ (boe). This is a result of our world class producing fields having one of the lowest Operating Costs in our industry (long term guidance of USD 3.2 to 4.2 per boe). Our remaining capital spend to produce out our proven plus probable reserves is less than USD 3 per boe.

Swift action taken to mitigate any potential impact from the Covid-19 pandemic to production operations:

  • We are part of a coordinated industry response, that focusses on minimising the risk of coronavirus infected personnel travelling offshore, and, in the case of a suspected infection offshore, to isolate and transport to shore as soon as possible. The Norwegian authorities have introduced certain exceptional measures to help deal with the situation.
  • To minimise risk to our production operations, we are down-manning offshore personnel in order to maintain a minimum level of activity allowing us to produce, maintain and plan the anticipated and most important activities on the platforms.
  • Edvard Grieg personnel will be kept at the minimum level required, whilst preserving the infill drilling programme. Installation of the Solveig/Rolvsnes subsea equipment has commenced and currently the first oil date in 2021 is being maintained. Should we see slippage in the Edvard Grieg Area projects it will not impact 2021 production guidance as we have excess well capacity on the Edvard Grieg field. Similar actions are being taken at Alvheim and Johan Sverdrup, preserving key activities and reorganising the phasing of the activities.

Clear opportunities identified to support near term cash flow and liquidity position:

  • Cost reductions of approximately MUSD 170 (including G&A) are already being implemented for 2020. Other measures to further strengthen our liquidity position are being identified such as deferring further non-committed projects.
  • Low cash operating costs means our production generates free cash flow at low oil prices and together with our existing BUSD 5.0 reserves based lending facility (RBL), provides the Company with good liquidity to fund our committed projects. The RBL is currently drawn at approximately BUSD 3.8
  • The Board of Directors announced on 23 March 2020 the decision to amend its dividend proposal from USD 1.80 to USD 1.0 per share, in order to maintain financial prudence and provide us with further liquidity flexibility in this challenging market. This will further strengthen our balance sheet and give us more flexibility in how we deploy our capital.

Alex Schneiter, President and Chief Executive Officer of Lundin Petroleum, said:

“Whilst we remain vigilant and prepared for many different eventualities, today our strategy remains broadly unchanged and our firm intention is to deliver on our 2020 work programme as presented at our Capital Market Day in January 2020 whilst deferring non-committed projects. We will, along the way, continue to apply a very strict capital discipline on the business, to preserve our liquidity position and further reduce and re-phase our capital spend without disrupting our business plans. Although the dividend proposal has been amended, our ability to distribute cash to our shareholders in a sustainable way will continue to be based upon our Free Cash Flow generation, debt gearing levels and the medium to long-term macroeconmic outlook. Overall, I am very pleased with how our organisation has responded to these challenging times and our team is focused on swiftly adapting to this changing environment.”

¹ Based on 2P profile

 

Amendment to proposed 2019 dividend and further update on AGM planning

Amendment to proposed 2019 dividend and further update on AGM planning

Amendment to proposed 2019 dividend and further update on AGM planning

23 March 2020

The Board of Directors of Lundin Petroleum AB (Lundin Petroleum or the Company) announces that in order to maintain financial prudence and further liquidity flexibility in the light of current market conditions, it is amending its dividend proposal to the 2020 Annual General Meeting (AGM) down to USD 1.0 per share (corresponding to MUSD 284) from USD 1.80 per share, as set out in the notice of the AGM published on 27 February 2020. The Company would also like to make shareholders aware that due to the deteriorating situation in regards to the Covid-19 viral pandemic, no member of the Board of Directors and no member of group management will be attending the AGM in person, but members of the Board of Directors and group management will instead attend via live video link.

Amended 2019 dividend proposal
Lundin Petroleum operates with one of the lowest cost bases in the offshore industry and has a free cash flow breakeven on average over the next seven years of around USD 17 per barrel of oil equivalent (boe), which gives the Company certain resilience to commodity price cycles. However, in the light of the recent fall in the oil price, compounded by a significant deterioration of the macro economic environment, the Board of Directors has taken the prudent measure, in order to provide further liquidity flexibility, of amending its dividend proposal to USD 1.0 per share (corresponding to MUSD 284), from USD 1.80 per share (corresponding to MUSD 511), which is to be voted on by shareholders at the AGM on 31 March 2020. The full revised dividend proposal together with a statement from the Board of Directors is available on the Lundin Petroleum website www.lundin-petroleum.com.

Details in regards to the updated proposed 2019 dividend to be paid in four equal instalments in 2020 and 2021
The Board of Directors will propose to the 2020 Annual General Meeting a dividend for 2019 of USD 1.0 per share, corresponding to MUSD 284 (rounded off), to be paid in quarterly instalments of USD 0.25 per share, corresponding to MUSD 71 (rounded off). Before payment, each quarterly dividend of USD 0.25 per share shall be converted into a SEK amount, and paid out in SEK, 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). The final USD equivalent amount received by the shareholders may therefore slightly differ depending on what the USD to SEK exchange rate is on the date of the dividend payment. The SEK amount per share to be distributed each quarter will be announced in a press release four business days prior to each record date.

Information about the proposed dividend to be paid out as follows:

Expected Ex-dividend dateExpected Record dateExpected payment date
1 April 20202 April 20207 April 2020
2 July 20203 July 20208 July 2020
1 October 20202 October 20207 October 2020
30 December 20204 January 20218 January 2021

In order to comply with Swedish company law, a maximum total SEK amount shall be pre-determined to ensure that the dividend distributed does not exceed the available distributable reserves of the Company and such maximum amount for the dividend has been set to a cap of SEK 5.188 billion (i.e. SEK 1.297 billion per quarter). If the total dividend would exceed the cap of SEK 5.188 billion, the dividend will be automatically adjusted downwards so that the total dividend corresponds to the cap of SEK 5.188 billion.

Update on precautionary measures at the AGM
The AGM will take place on 31 March 2020 in “Vinterträdgården” at Grand Hôtel, Södra Blasieholmshamnen 8, in Stockholm, commencing at 13.00.

Given the deteriorating situation in regards to the Covid-19 viral pandemic and restrictions in relation to it, the Company has decided to take the precautionary measure of restricting attendance in person to a minimum and instead, members of the Board of Directors and group management will be present via live video link. All other precautionary measures as announced on 13 March 2020 will remain in place, namely:

  •  The AGM agenda will be addressed by the Chairman of the AGM without any specific presentations, and it is proposed that there be no speech by the Chief Executive Officer
  • To enable shareholders to vote whilst not being physically present at the AGM, the registrar Computershare is offering a service to any shareholder registered to attend the AGM and holding no more than 100,000 shares to appoint Computershare to vote on their behalf, the proxy is available on request by contacting Computershare at telephone +46-8-518 01 554 or by e-mail info@computershare.se – the Company encourages shareholders to exercise their voting rights accordingly
  • Any shareholders displaying symptoms of illness or being part of a risk group are specifically requested not to attend the AGM and to exercise their voting power through proxy There will be no ancillary showcases or informal engagement with representatives of Lundin Petroleum
  • There will be no food or beverages served before, during or after the AGM
  • The meeting will be held entirely in Swedish and no translation services will be provided
  • Attendees, who nonetheless wish to attend in person, may be subject to health screening at the entrance and will be asked to spread out in the room and avoid close contact with other attendees
  • Under all circumstances, only registered shareholders (including proxies and advisers) that have given notice of attendance to the Company in due order will be allowed to enter the meeting, meaning that the AGM will resolve that no external guests, including media and other stakeholders will be allowed to attend

Lundin Petroleum publishes the Annual Report and the Sustainability Report for 2019

Annual Report 2019

Lundin Petroleum publishes the Annual Report and the Sustainability Report for 2019

4 March 2020

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce the publication of the Annual Report and the Sustainability Report for 2019.

The reports are available to read and to download on Lundin Petroleum’s website, www.lundin-petroleum.com, and on the Lundin Petroleum IR App. Shareholders who wish to receive a printed copy of the Annual Report 2019 or the Sustainability Report 2019 can request one on Lundin Petroleum’s website or by telephone on +46 8 440 54 50.

 

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Annual report 2019
04.03.2020, 3.37 MB

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Sustainability report 2019
04.03.2020, 6.05 MB

Capital Markets Day 2020

CMD-2020

Capital Markets Day 2020

31 January 2020

2020 Capital Markets Day information
Lundin Petroleum will be hosting its 2020 Capital Markets Day on 31 January 2020 at 11.00 CET (10.00 GMT) at the London Stock Exchange. The Capital Markets Day will include presentations by the Company’s management team on its fourth quarter 2019 financial results, the business strategy, the 2020 budgeted development campaign and its exploration and appraisal programme.

 

Details for the live webcast:
Sweden +46 8 56642651
UK +44 3333000804
United States +1 6319131422
Norway +47 23500243

Access Pin : 58812582

Webcast link : https://lundinpetroleum.videosync.fi/2020-01-31-q4_cmd

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2020 Capital Markets Day
31.01.2020, 24.96 MB

Year End Report 2019

Year End Report 2019

Year End Report 2019

31 January 2020

·Strong financial performance with record free cash flow generation of MUSD 1,271.7, of which MUSD 312.7 relates to organic free cash flow and MUSD 959.0 relates to the sale of 2.6 percent working interest in Johan Sverdrup
·Board of Directors propose 2019 dividend of USD 1.80 per share corresponding to MUSD 511
·2019 production averaged 93.3 Mboepd above mid-point of upgraded guidance and, at year end production was over 150 Mboepd
·Operating cost of USD 4.03 per boe, below USD 4.25 per boe guidance for the year
·Johan Sverdrup producing around 350 Mbopd gross at year end 2019, 80 percent of Phase 1 plateau rate
·Completion of 2.6 percent sale of Johan Sverdrup and 16 percent share redemption with Equinor during 2019
·Launch of Decarbonisation Strategy targeting carbon neutrality in its exploration and production activities by 2030
·Board of Directors proposes to rename the Company to Lundin Energy

 

Financial summary1 Jan 2019-
31 Dec 2019
12 months
1 Oct 2019-
31 Dec 2019
3 months
1 Jan 2018-
31 Dec 2018
12 months
1 Oct 2018-
31 Dec 2018
3 months
Production in Mboepd93.3135.181.182.1
Revenue and other income in MUSD2,948.7749.72,640.7652.2
EBITDA in MUSD1
Per share in USD1
1,918.4
6.07
695.5
2.45
1,932.5
5.71
480.7
1.42
Free cash flow in MUSD
Per share in USD
1,271.7
4.03
153.8
0.54
663.0
1.96
173.3
0.51
Net result in MUSD
Per share in USD
824.9
2.61
155.3
0.56
225.7
0.67
-98.2
-0.29
Adjusted Net result in MUSD
Per share in USD
252.7
0.80
78.9
0.28
295.3
0.87
75.2
0.22
Net debt in MUSD4,006.74,006.73,398.23,398.2

1 Excludes the reported after tax accounting gain of MUSD 756.7 on the divestment of a 2.6 percent working interest in the Johan Sverdrup project.


Comments from Alex Schneiter, President and CEO of Lundin Petroleum:

“2019 has been one of the most transformational periods in the Company’s development, which ended with a record high exit production rate at over 150 Mboepd. Alongside this we have not only transformed what we are producing, we have also focused on how we produce oil and gas in the most sustainable and efficient manner. Such ambition has been formalised through our Decarbonisation Strategy, which targets carbon neutrality by 2030.

“The early startup of Johan Sverdrup Phase 1 in October 2019, was a significant milestone for our business and has firmly laid the foundations for a period of sustainable and efficient production growth well into the next decade. The field has since ramped up quickly and ahead of expectations and at year end was producing around 350 Mbopd gross, which is about 80 percent of the Phase 1 facilities capacity of 440 Mbopd. I would like to thank our teams, as well as the operator Equinor, for executing such a good project; to be achieving first oil on a development of this scale, two months early and significantly under budget, adds real value to our shareholders and is a testament to the hard work of everyone involved.

“Our key Edvard Grieg field continued to exceed expectations with operating efficiency ahead of guidance at 98 percent. This achievement is underpinned by continued reservoir outperformance and limited water production, which alongside the infill drilling programme scheduled for 2020, has enabled us to lift gross ultimate reserves to 300 MMboe. This field has consistently delivered above expectations for us and I am confident this performance will continue in the future, especially as we see more near-field resources being derisked through our ongoing drilling programme.

“Financially we have had another very strong period of free cash flow generation, driven by the sale of 2.6% of Johan Sverdrup, higher production and a cost base which we have continued to maintain at industry leading low levels of USD 4.03 per boe. This coupled with the share redemption from Equinor during the year, has driven our earnings per share and I am glad to note the Board is recommending a 22 percent increased dividend of USD 1.80 per share (in total MUSD 511), clearly demonstrating our focus on driving shareholder returns.

“With the sanction of the full electrification of Edvard Grieg, being developed together with the Johan Sverdrup Phase 2 project, our ambition to produce some of the lowest carbon intensity barrels in the world is closer to being realised. This will result in a significant reduction in CO2 emissions from the Edvard Grieg Area to below 1 kg per boe by the end of 2022. During the year and in line with the Decarbonisation Strategy, we also started to execute the plan to fully replace all Lundin Petroleum net power usage on both the Edvard Grieg and Johan Sverdrup fields by 2022, through direct investment in profitable renewable projects. These projects will also provide a natural hedge to the electricity price fluctuation, which will represent a significant element of field operating costs. Also announced in January 2020, the Board proposed to change the name of the Company to Lundin Energy in accordance with our Decarbonisation Strategy and our aim to continue to play an important part in the future energy mix.

“2020 is set to be another busy year for Lundin Petroleum across the full spectrum of our operations and we have another very active exploration and appraisal programme with ten wells across our portfolio in Norway, targeting over 650 MMboe of net unrisked resources. I would like to thank all stakeholders for their support during the year and I very much look forward to reporting our progress in 2020.”

2020 Capital Markets Day information
Lundin Petroleum will be hosting its 2020 Capital Markets Day on 31 January 2020 at 11.00 CET (10.00 GMT) at the London Stock Exchange. The Capital Markets Day will include presentations by the Company’s management team on its fourth quarter 2019 financial results, the business strategy, the 2020 budgeted development campaign and its exploration and appraisal programme.

Details for the live webcast:
Sweden +46 8 56642651
UK +44 3333000804
United States +1 6319131422
Norway +47 23500243

Access Pin : 58812582

Link : https://lundinpetroleum.videosync.fi/2020-01-31-q4_cmd

Lundin Petroleum announces its 2020 budget, production guidance and capital markets day information

Lundin Petroleum announces its 2020 budget, production guidance and capital markets day information

Lundin Petroleum announces its 2020 budget, production guidance and capital markets day information

31 January 2020

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce its 2020 development, appraisal, exploration and abandonment budget which totals USD 1.27 billion and represents a 30 percent increase on 2019 capital expenditure. The production guidance for 2020 is between 145 to 165 thousand barrels of oil equivalent per day (Mboepd) and the long-term production guidance is increased to 160 – 170 Mboepd from 2021 with a target of over 200 Mboepd.

2020 guidance2019 results
Production145 to 165 Mboepd93.3 Mboepd
Operating costUSD 3.4 per boeUSD 4.03 per boe
Development expenditureMUSD 895MUSD 672
Exploration & Appraisal expenditureMUSD 225MUSD 298
Abandonment expenditureMUSD 50MUSD 4
Renewables InvestmentsMUSD 100
Long-term guidanceUpdated guidancePrevious guidance
Production160 to 170 Mboepd (2021 onwards)>150 Mboepd from Johan Sverdrup Phase 1 plateau (2020)
Target >200 Mboepd~170 Mboepd from Johan Sverdrup full field plateau (2023)
Operating costUSD 3.2 to 4.2 per boeUSD 3.4 to 4.4 per boe from 2020 onwards

2020 Production Guidance
The average production in 2019 was 93.3 Mboepd, which was above the mid-point of the upgraded 2019 production guidance of between 90 and 95 Mboepd, and 10 percent above the mid-point of the original guidance of 75 to 95 Mboepd. Lundin Petroleum’s production guidance for 2020 is between 145 to 165 Mboepd, reflecting the ramp-up of Johan Sverdrup Phase 1 to plateau levels by the summer of 2020 and a planned two-week maintenance shutdown at Edvard Grieg in the second quarter of 2020. The production contribution is split approximately 50 percent from the Johan Sverdrup field, 40 percent from the Edvard Grieg field and the remainder from the other assets.

The long-term production guidance for the Company has been increased to between 160 and 170 Mboepd from 2021 onwards, with a target of over 200 Mboepd from upsides from existing fields. The updated long-term guidance reflects the sale of a 2.6 percent interest in Johan Sverdrup during 2019, which is offset by an extension of the Edvard Grieg plateau period.

Development Budget
The 2020 development expenditure is budgeted at USD 895 million, which is an increase of one-third over 2019 levels. The Edvard Grieg tie-back projects, Solveig and Rolvsnes EWT will see increased activity compared to last year, and drilling will start on the Edvard Grieg infill campaign.

Approximately 40 percent of the 2020 budgeted development expenditure relates to the non-operated Johan Sverdrup field (WI 20%). The remaining spend for the Phase 1 project relates mainly to the drilling of additional development wells, while the Phase 2 project will see another active year of construction ahead of scheduled start-up in Q4 2022.

Approximately 35 percent of the budgeted development expenditure relates to the operated Solveig project (WI 65%) and the Rolvsnes Extended Well Test (WI 80%). Both projects will be subsea tie-backs to Edvard Grieg and are being implemented together. In 2020, offshore construction activities will take place, which include the installation of the subsea equipment and pipelines. On Solveig, drilling will start on the first development wells during the year and the project remains on track for first oil in Q1 2021.

The Edvard Grieg field (WI 65%) 2020 programme, includes drilling of the first of the three infill wells sanctioned in 2019, as well as contribution to the Utsira High Area power from shore system.

Budgeted expenditure at the non-operated Alvheim area involves the drilling of two infill wells.

Exploration and Appraisal Budget
The exploration and appraisal budget for 2020 is USD 225 million and involves the drilling of 10 wells, of which five are operated, and is targeting over 650 MMboe of net unrisked resources.

Four exploration wells are planned in the Southern Barents Sea. Two wells will be drilled on the Loppa high area close to the Alta/Gohta discoveries, targeting the Polmak prospect in PL609 (WI 40%) and the Bask prospect in PL533B (WI 40%). The other wells to be drilled are Schenzhou in PL722 (WI 20%) close to the Wisting oil discovery, and Spissa in PL960 (WI 20%).

In the Norwegian Sea two wells are planned, an appraisal well on the Balderbrå gas discovery made in 2018 in PL894 (WI 10%) estimated to contain between 50 and 140 MMboe of gross resources and an exploration well on the Melstein prospect in PL886 (WI 60%).

Four exploration wells are planned to be drilled in the Norwegian North Sea, Iving in PL820S (WI 40%) and Hasselbaink in PL917 (WI 20%) both located east of the Alvheim area, Merckx in PL981 (WI 60%) in the greater Utsira High area within tie-back distance to Edvard Grieg, and the Dovregubben prospect in PL976 (WI 50%) on the Sele High southeast of the Utsira High.

Abandonment Expenditure
The 2020 abandonment expenditure budget is USD 50 million for abandonment of the Brynhild development wells, representing the bulk of the field abandonment costs, and with the subsea facilities scheduled to be decommissioned in 2021.

Renewables Power Investments
Investments in the Leikanger hydropower and Metsälamminkangas windfarm renewables power projects in 2020 is USD 100 million, representing approximately eight percent of the Company’s total capital spend, which also reflects the intention to farm-down 50% of the 100% acquired interest in the Metsälamminkangas project.

2020 Capital Markets Day information
Lundin Petroleum will be hosting its 2020 Capital Markets Day on 31 January 2020 at 11.00 CET (10.00 GMT) at the London Stock Exchange. The Capital Markets Day will include presentations by the Company’s management team on its fourth quarter 2019 financial results, the business strategy, the 2020 budgeted development campaign and its exploration and appraisal programme.

Details for the live webcast:
Sweden +46 8 56642651
UK +44 3333000804
United States +1 6319131422
Norway +47 23500243

Access Pin : 58812582

Link : https://lundinpetroleum.videosync.fi/2020-01-31-q4_cmd

 

Proposed 2019 dividend of USD 1.80 per share corresponding to USD 511 million

Proposed 2019 dividend of USD 1.80 per share corresponding to USD 511 million

Proposed 2019 dividend of USD 1.80 per share corresponding to USD 511 million

31 January 2020

The Board of Directors of Lundin Petroleum AB (Lundin Petroleum) proposes a 2019 dividend of USD 1.80 per share, corresponding to USD 511 million.

In accordance with the dividend policy as announced on 30 January 2019, the Board of Directors will propose to the 2020 Annual General Meeting a dividend for 2019 of USD 1.80 per share, corresponding to USD 511 million (rounded off), to be paid in quarterly instalments of USD 0.45 per share, corresponding to USD 128 million (rounded off). Before payment, each quarterly dividend of USD 0.45 per share shall be converted into a SEK amount, and paid out in SEK, 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). The final USD equivalent amount received by the shareholders may therefore slightly differ depending on what the USD to SEK exchange rate is on the date of the dividend payment. The SEK amount per share to be distributed each quarter will be announced in a press release four business days prior to each record date.

Information about the proposed dividend to be paid out as follows:

Expected Ex-dividend dateExpected Record dateExpected payment date
1 April 20202 April 20207 April 2020
2 July 20203 July 20208 July 2020
1 October 20202 October 20207 October 2020
30 December 20204 January 20218 January 2021

In order to comply with Swedish company law, a maximum total SEK amount shall be pre-determined to ensure that the dividend distributed does not exceed the available distributable reserves of the Company and such maximum amount for the dividend has been set to a cap of SEK 9.203 billion (i.e. SEK 2.301 billion per quarter). If the total dividend would exceed the cap of SEK 9.203 billion, the dividend will be automatically adjusted downwards so that the total dividend corresponds to the cap of SEK 9.203 billion.

 

Launch of the Decarbonisation Strategy targeting carbon neutrality by 2030 and proposed name change to Lundin Energy AB

Decarbonisation Strategy and proposed name change to Lundin Energy AB

Launch of the Decarbonisation Strategy targeting carbon neutrality by 2030 and proposed name change to Lundin Energy AB

27 January 2020

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce the launch of its Decarbonisation Strategy, which targets carbon neutrality by 2030. In relation to this, and to better reflect the business today and the clear actions and targets towards a lower carbon future, the Board is proposing to change the name of the Company to Lundin Energy AB.

Decarbonisation Strategy
Lundin Petroleum recognise the challenges of climate change combined with the increasing energy needs linked to growing global population, the international community’s commitment to reduce global carbon emissions and the role that forward-thinking companies can play in this. With the Decarbonisation Strategy, the Company has formalised its ongoing commitment to reduce its carbon footprint to the lowest possible levels, through an effective combination of emissions reductions, energy efficiency, targeted research and development and carbon capture mechanisms. Also, as previously announced investment in renewable energy projects will be undertaken to replace net electricity consumption, providing these generate a good return to shareholders on a leveraged basis.

Roadmap to carbon neutrality by 2030:
• From 2020 limit average operated and non-operated portfolio carbon intensity to below 4kg CO2 per boe and from 2023 to below 2kg CO2 per boe
• In 2022 fully electrify Edvard Grieg and Johan Sverdrup Phase 2, to achieve carbon intensity for these assets of less than 1kg CO2 per boe
• From 2022 replace all net electricity usage from power from shore, through investments in renewable power generation
• To offset all business and operationally related air travel emissions through natural carbon capture, effective from 2018
• By 2030 achieve carbon neutrality across our operations as an oil and gas producer

Proposed name change to Lundin Energy AB
The Board of Lundin Petroleum is proposing to change the name of the Company to Lundin Energy AB. The proposed name change remains subject to shareholder approval at the Company’s Annual General Meeting on 31 March 2020.

The Board believes that with the production growth pathway set towards the target of 200 Mboepd, coupled with sustainable, industry leading low operating costs and a carbon intensity which will be below 2 kg CO2 per boe in 2023 versus the world average of 18 kg CO2 per boe, it is clear that the Company is transforming what it delivers as well as how it is delivered. Lundin Energy better reflects what the Company is doing as an explorer and producer today and its role in supplying the energy transition with the most sustainable oil and gas production possible as an essential part of the future energy mix.

Alex Schneiter, President and CEO of Lundin Petroleum commented:
“I am personally very proud to announce the launch of our Decarbonisation Strategy, through which we are seeking to formalise our commitment to reducing emissions and our carbon footprint, in order to supply the growing demand for all types of energy with the most sustainably produced product we can. We have a target of 2030 to reach carbon neutrality across our operations and we have set out a realistic and deliverable pathway towards this, which clearly differentiates us as an independent oil and gas producer in our industry.

“I am also pleased to announce that the Board is proposing to change the name of the Company to Lundin Energy. It represents our ambition to become carbon neutral, our position as a leading provider of oil and gas in the future and recognition of our role in the changing energy mix.”

 

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Decarbonisation Strategy
01.04.2020, 159.92 KB

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9 month report 2020

Lundin Energy Licence Summary