Statoil buys stake in Lundin Petroleum for $538.5m
Oil major Statoil has acquired 11.93% stake in Swedish independent oil and gas company, Lundin Petroleum, for approximately SEK4.6bn ($538.5m).
As per the terms of the agreement, Statoil acquired 37,101, 561 shares in Lundin Petroleum, which has the second-largest stake in the Statoil-operated Johan Sverdrup field located in Norwegian North sea.
The Johan Sverdrup field, which comprises two discoveries including Avaldsnes and Aldous, is expected to produce 120,000 to 200,000 barrels of oil per day staring in 2017.
Statoil president and CEO Eldar Sætre said: "We consider this a long term shareholding. The Norwegian Continental Shelf is the backbone of Statoil's business, and this transaction indirectly strengthens our total share of the value creation from core, high value assets on the NCS."
The acquisition is expected to increase Statoil's exposure to core field development projects and growth assets on NCS, including Johan Sverdrup and Edvard Grieg.
Reuters cited Statoil spokesman Baard Glad Pedersen as saying: "The timing and the current market enable us to do this at a favourable price. This is a value creating transaction for us.
"We have a strong financial position and are able to pay for this while at the same time working on our ongoing projects and investing in them."
Statoil said it has no plans to further increase its stake in the company.
Image: Illustration of Statoil-operated Johan Sverdrup field in the Norwegian North Sea. Photo: courtesy of Statoil.