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Equinor To Divest 16% Shareholding In Lundin Petroleum

Equinor ASA (EQNR) said that it agreed to divest a 16 percent shareholding in Lundin Petroleum for a direct interest of 2.6 percent in the Johan Sverdrup field and a cash consideration of around $650 million.

As per the terms of the agreements, Equinor will divest around 54.5 million shares in Lundin at a price of SEK 266.4 per share. Total consideration for the divestment of shares in Lundin amounts to around $1.56 billion.

Equinor will acquire a 2.6% direct ownership share in the Equinor operated Johan Sverdrup field for a cash consideration of $910 million.

Equinor will have a 42.6 percent ownership share in the Johan Sverdrup field and own a 4.9 percent shareholding in Lundin Petroleum following completion of the transactions.

The agreement includes a contingent payment of up to US$52 million payable to Lundin in 2025 if Johan Sverdrup proves to be at the upper end or above the indicated resource range of 2.2 - 3.2 billion boe.

In agreement with Lundin, the transaction is being executed through a total return swap agreement, where the Lundin shares will be acquired by Sparebank1 Markets and subsequently redeemed.

Closing of the acquisition of the interest in Johan Sverdrup transaction is expected by the fourth-quarter 2019.

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