Equinor has completed the previously announced divestment of its 16% stake in Lundin Petroleum.

The acquisition closed following the completion of all transaction conditions, including regulatory and government approvals.

In July 2019 the Norwegian firm signed the agreement to divest its Lundin Petroleum stake against a 2.6% direct ownership share in Johan Sverdrup oilfield.

Equinor sold around 54.5 million shares in Lundin at a price of Skr266.4 ($28.22) per share, which valued the deal at around $1.56bn. In return, it paid a cash consideration of $910m for the direct stake in the Johan Sverdrup field, thereby valuing the overall transaction at $650m.

Equinor will continue to retain a 4.9% stake in Lundin.

During the announcement of the transaction, Equinor president and CEO Eldar Sætre said: “Since 2016 we have more than doubled the value of our investment in Lundin.

“This transaction gives us the opportunity to capitalise on this value creation, and at the same time increase our direct ownership in the Johan Sverdrup field.”

Located on the Utsira Heigh in the North Sea, Johan Sverdrup is one of the largest oil fields on the Norwegian continental shelf. It is estimated to contain around 2.7 billion barrels of oil equivalent, serving as one of the key industrial projects in Norway in the next 50 years.

Equinor is the operator of this offshore project, with Lundin Norway, Petoro, AkerBP and Total serving as its partners.