Statoil Upgrades Stake in Lundin Petroleum Through Asset Swap
May 03 2016 - 5:50AM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Norway's Statoil ASA (STO) said Tuesday it will pay
$68 million in cash plus its holding in a North Sea field to Lundin
Petroleum AB (LUPE.SK) in exchange for an increased stake in the
Swedish company, strengthening its exposure to core assets on the
Norwegian Continental Shelf.
Through the deal, Statoil increases its share of the North Sea's
giant Johan Sverdrup oil field--a $13 billion project estimated to
hold up to 3 billion barrels of crude--which has a break-even of
less than $30 per barrel for the first phase of the project.
The deal will see Statoil hand over its entire 15% interest in
the Edvard Grieg field--where the two companies already work
together--as well as a 9% interest in the Edvard Grieg Oil
pipeline, a 6% interest in the Utsira High Gas pipeline, plus the
$68 million cash.
In return, Lundin Petroleum will issue Statoil 27,580,806
shares, transfer 2 million treasury shares and issue an additional
1,735,309 shares in exchange for a cash consideration.
Following completion of the transaction Statoil will own
approximately 68.4 million shares of Lundin Petroleum,
corresponding to 20.1% of the shares and votes.
Statoil said it has no plan to further increase its shareholding
in Lundin Petroleum.
Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@domchopping @WSJNordics
(END) Dow Jones Newswires
May 03, 2016 05:35 ET (09:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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