Equinor sells remaining 4.88% stake in Lundin for $333m

6 May 2020 (Last Updated May 6th, 2020 12:32)

Norwegian oil firm Equinor has divested its remaining 4.88% stake in Swedish firm Lundin Energy by selling around 14 million shares in the latter for a consideration of about SEK3.3bn ($333m).

Equinor sells remaining 4.88% stake in Lundin for $333m
The Johan Sverdrup field in the North Sea. Credit: Ole Jørgen Bratland / Equinor ASA.

Norwegian oil firm Equinor has divested its remaining 4.88% stake in Swedish firm Lundin Energy. It has sold around 14 million shares in the latter for a consideration of about $335m (SEK3.3bn).

This means Equinor is now no longer a shareholder in Lundin Energy.

In July last year, Equinor agreed to divest its 16% stake in Lundin Petroleum for approximately $1.56bn, and in return acquire a 2.6% direct ownership share in Johan Sverdrup oilfield.

The company completed its divestment of the 16% stake divestment in September 2019, after which it retained a 4.88% stake in Lundin.

Equinor ASA CFO Lars Christian Bacher said: “This transaction follows our divestment of a 16 percent shareholding in Lundin in July 2019 and concludes what has been a successful investment for Equinor.

“We have created significant value and increased our direct exposure in the Johan Sverdrup field. Although we are now no longer a shareholder in Lundin, we continue to consider the company a strong partner on the Norwegian Continental Shelf.”

The Johan Sverdrup field is located 150km off the Norwegian coast in the North Sea.

It is being developed in two phases, of which the first phase came online in October 2019. The second phase will begin production in the fourth quarter of 2022.

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

In March this year, Equinor announced that its Johan Sverdrup oilfield is ramping up production at a faster pace than originally expected.