Statoil To Raise Stake In Lundin Petroleum Through Swap Deal - Quick Facts

(RTTNews) - Norwegian energy firm Statoil ASA (STO) said it has entered into an agreement with Lundin Petroleum AB (LUP.TO) to divest its entire 15 percent interest in the Edvard Grieg field for an increased shareholding in Lundin Petroleum.

The transaction also includes divestment of a 9 percent interest in the Edvard Grieg Oil pipeline and a 6 percent interest in the Utsira High Gas pipeline, and in addition payment of a cash consideration of $68 million to Lundin Petroleum.

Following completion of the transaction Statoil will own about 68.4 million shares of Lundin Petroleum, corresponding to 20.1 percent of the shares and votes. The effective date of the divestments of these assets is 1 January 2016.

The transaction is subject to approval in Lundin Petroleum AB's Extraordinary General Meeting 30 May 2016 and required authority approvals. Closing of the transaction is expected by end of July 2016.

Statoil noted that the transaction was initiated by Lundin Petroleum. The two companies will continue to operate independently, and act as separate entities in all licenses on the NCS.

In consideration for the acquisition of the assets, Lundin Petroleum has agreed to issue to Statoil 27.58 million shares in Lundin Petroleum based upon an agreed average share price of 138 Swedish Krona per share and a krona/U.S. dollar exchange rate of 8.09.

In addition Lundin Petroleum will transfer 2 million treasury shares and issue an additional 1.74 million shares to Statoil in exchange for a cash consideration based on the market value of the shares.

As a result of the transaction Statoil will equity account its stake in Lundin Petroleum, resulting in an increase in Statoil's reserves and production. Statoil has no plan to further increase its shareholding in Lundin Petroleum.