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Equinor completes swap of Lundin stake for interest in Johan Sverdrup

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Equinor completes swap of Lundin stake for interest in Johan Sverdrup

Equinor ASA completed the exchange of its 16% stake in Lundin Petroleum AB (publ) for a 2.6% interest in the Johan Sverdrup field and cash of around $650 million, according to an Aug. 30 news release from the Norwegian company.

Lundin redeemed around 54.5 million of its shares from Equinor for a total consideration of $1.56 billion, while Equinor acquired the stake in the Johan Sverdrup field from Lundin for $910 million. Equinor received $650 million in cash as a result of the exchange.

The agreement also includes a contingent payment of up to $52 million payable to Lundin in 2025 upon the field proving to be at the upper end of a resource range of 2.2 billion barrels of oil equivalent to 3.2 billion boe.

Equinor's stake in the Johan Sverdrup field has increased to 42.6%, while its interest in Lundin dropped to 4.9%.

In a separate Aug. 30 release, Lundin said its subsidiary Lundin Norway AS has a 20% interest in the Johan Sverdrup project effective Jan. 1.

Lundin also repaid and canceled its short-term bridge facility of up to $500 million with the receipt of cash. The remaining proceeds will be used to partly repay outstanding amounts in the company's $5 billion reserve-based lending facility. Lundin used funds from the instruments for the deal.

Equinor spokesman Morten Eek also said the company still expects the Johan Sverdrup field to start production in November, Reuters reported Aug. 30.

The first phase is projected to produce 440,000 barrels of oil per day and will likely peak to 660,000 bbl/d with the second phase.