Friday, April 3, 2020

Equinor to Sell Shares in Lundin Petroleum

July 8, 2019

(Photo: Lundin Petroleum)

Norwegian oil and gas firm Equinor ASA on Sunday said it will sell a 16% stake in Lundin Petroleum AB for about $1.56 billion, and in return acquire an additional 2.6% stake in Johan Sverdrup oilfield.

Equinor agreed to sell about 54.5 million Lundin shares at a price of 266.4 crowns ($28.22), representing a discount of about 9.6% to Lundin's close on Friday.

It will retain a 4.9% stake in Lundin.

The company will also acquire a 2.6% direct ownership share in the Johan Sverdrup oilfield for $910 million, it added.

Equinor's giant Johan Sverdrup oilfield is expected to start production in November this year.

At closing, the Norwegian company will hold 42.6% ownership in the oilfield.

"An increased direct ownership share (in Johan Sverdrup) gives us the opportunity to create even more value for our shareholders," Equinor Chief Executive Officer Eldar Saetre said.

In a separate statement, Lundin said the deal will immediately add to its per share earnings.

($1 = 9.4412 Swedish crowns)

(Reporting by Shubham Kalia in Bengaluru, Editing by William Maclean and Alexandra Hudson)

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