Statoil increases its holding in Lundin Petroleum – Swedish Dagbladet

photo: Vegard Wivesta cave / AP

to buy units of the Edvard Grieg field , Lundin Petroleum has agreed to issue approximately 27.6 million shares Statoil for an average share price of SEK 138 per share and an exchange rate of 8,098 per dollar.

Statoil will in turn buy 3.74 million shares of Lundin, of which 2 million are own shares and more than 1 , 7 million are newly issued shares for a cash consideration based on a share price of 145.66 per share.

Already in January Statoil bought nearly 12 percent of its holding in Lundin Petroleum for 4.6 billion. Total, Statoil had bought on the 37.1 million shares of Lundin Petroleum, which represents 11.9 percent of the shares and votes. After today’s transaction, the total holding to 68.5 million shares, corresponding to 20.1 percent.

Lundin will after the transaction own 15 percent of Statoil’s stake in the Edvard Grieg field. This also includes a 9 per cent stake in the Edvard Grieg oil pipeline and a share of 6 percent in Utsirahöjdens gas pipeline. The transaction is expected to close in July 2016.

The deal was initiated of Lundin Petroleum and the two companies will operate independently of the oil fields in accordance with their licenses. But as a minority shareholder can Statoil further strengthen its exposure to the oil fields in Norway.

“The increased shareholding will be an important long-term industrial investment for Statoil. The transaction also highlights our long-term interest and commitment to the future of the oil fields in Norway “writes Hans Jakob Hegge, finance and Vice President of Statoil.

Statoil intends not to buy on a greater share of Lundin Petroleum, or propose amendments to the company’s board, said the company in a press release.