Lundin Energy announced the completion of the transaction to acquire a further 25 percent working interest from OMV (Norge)

December 21, 2021

Lundin Energy AB is pleased to note the completion of the previously announced transaction to acquire a further 25 percent working interest from OMV  AS in the Wisting development, for USD 320 million. Lundin Energy has also entered in to a cooperation agreement with Equinor ASA  regarding the operatorship of Wisting and nearby exploration licences.

The transaction to acquire a further 25 percent working interest in the Wisting development has completed following the closing of all pre-requisite conditions, including regulatory and government approvals and is effective from 1 January 2021. In addition, Lundin Energy has concluded a cooperation agreement with Equinor for the Wisting development with the following key terms, which will see Lundin Energy:

  • Propose Equinor to retain operatorship of the Wisting development into the operations phase, allowing operational synergies across their various developments in the Barents Sea
  • Become operator for the exploration acreage surrounding Wisting (PL1133 and PL1134), including an increase in Lundin Energy’s working interest to 35%1
  • Collaborate further with Equinor in the Wisting development by secondment of Lundin Energy employees into key technical and operational positions within the Wisting projectThis agreement further strengthens the relationship between Equinor and Lundin Energy and sets out a strong collaboration for exploration and operations in what will be the next Barents Sea production hub.

    Wisting Acquisition Highlights:

  • Transaction increases Lundin Energy’s working interest in the Wisting development from 10 percent to35 percent
  • Strengthens Lundin Energy’s position in a core area with significant remaining prospectivity andmeaningfully contributes to the Company’s long-term production outlook
  • Adds net 130 million barrels of oil equivalent (MMboe) fully appraised contingent resources at anacquisition price of approximately 2.5 USD/boe
  • Project concept selection and award of front-end engineering and design (FEED) contracts has takenplace with the project on track to submit a Plan for Development and Operation (PDO) by end of 2022
  • Wisting’s development concept is in line with Lundin Energy’s decarbonisation plan with a power fromshore solution being matured
  • Addition of Wisting resources alone delivers total resource replacement ratio for the Company ofapproximately 190 percent in 2021

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