Photo: The Johan Sverdrup field in the North Sea. (Photo: Espen Rønnevik / Øyvind Gravås – Equinor ASA)

Equinor closes Lundin share sale, boosts Johan Sverdrup interest

Equinor has completed sale of shares in Lundin Petroleum and acquisition of further direct interest in Johan Sverdrup field offshore Norway. This follows all transaction conditions being met, including government and regulator approvals.

The Johan Sverdrup field in the North Sea. (Photo: Espen Rønnevik / Øyvind Gravås – Equinor ASA)

According to its statement on Friday, Equinor and Lundin have completed both parts of the transaction announced on July 7, 2019.

The overall result is that Equinor has divested a 16 percent shareholding in Lundin for a direct interest of 2.6 percent in the Johan Sverdrup field and a cash consideration of around $650 million.

The first part, Sparebank1 Markets’ acquisition of around 54.5 million shares in Lundin Petroleum from Equinor, concluded on August 5, and followed the approval of the transaction in Lundin Petroleum’s Extraordinary General Meeting on July 31, 2019.

The second part, Equinor’s acquisition of a 2.6 percent interest in the Johan Sverdrup field from Lundin Norway, concluded on Friday, August 30. The effective date of this acquisition is January 1, 2019.

Following completion of the sale, Lundin Norway has a 20 percent working interest in the Johan Sverdrup unit.

Johan Sverdrup is one of the five largest oil fields on the Norwegian continental shelf. With expected resources estimated at 2.7 billion barrels of oil equivalent, it is also one of the most important industrial projects in Norway in the next 50 years.

The first phase of the giant field development in the North Sea is nearing completion, and the second phase is already underway.

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