“Since 2016 we have more than doubled the value of our investment in Lundin,” said Eldar Sætre, president and CEO of Equinor.
“This transaction gives us the opportunity to capitalize on this value creation, and at the same time increase our direct ownership in the Johan Sverdrup field.”
Ian Lundin, chairman of Lundin Petroleum, said: “The chance to redeem the majority of Equinor’s holding in Lundin Petroleum at a discount to the market and before the pivotal start-up of the Johan Sverdrup development project in November this year, was an opportunity which rarely comes along.”
Following completion, Equinor will have a 42.6% ownership share in the Johan Sverdrup field and will retain a 4.9% shareholding in Lundin Petroleum.
The agreement includes a contingent payment of up to $52 million - payable to Lundin in 2025 - if the field performance suggests resources are at the upper end of estimated 2.2-3.2 Bboe range.