Statoil agreed to exchange its interest in Edvard Grieg field for increasing of shares in Lundin Petroleum. The Norwegian oil company will divest its entire 15% interest in the Edvard Grieg field, including divestment of a 9% interest in the Edvard Grieg Oil pipeline and a 6% interest in the Utsira High Gas pipeline, as well as 68 million USD cash payment to increase its shares in Lundin Petroleum to 20.1%. The two companies will continue to operate independently, using their separate entities in all licenses on the Norwegian Continental Shelf.
“Increasing our resource base, production and cash flow at the bottom of the cycle will, in my view, lead to Lundin Petroleum emerging stronger than ever as an independent company, and continue to build upon the transformational growth already well under way, creating greater sustainable long term value for our shareholders in the process”, said the CEO and president of Lundin Petroleum, Alex Schneiter.
Lundin Petroleum is an independent international petroleum company, formed in 2001 by takeover of Lundin Oil AB by Canadian independent Talisman Energy. The company has large interests in offshore drilling and exploration, as well as investment in pipelines infrastructure on the seabed.