Equinor ASA said Sunday that it has agreed with Lundin Petroleum AB to sell a 16% shareholding in Lundin for a direct interest of 2.6% in the Johan Sverdrup field and around $650 million in cash.
"Since 2016 we have more than doubled the value of our investment in Lundin," said Equinor Chief Executive Eldar Saetre. "This transaction gives us the opportunity to capitalize on this value creation, and at the same time increase our direct ownership in the Johan Sverdrup field."
Under the terms of the agreements, Equinor will divest around 54.5 million shares in Lundin at a price of 266.4 Swedish kronor ($28.2) a 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 in the North Sea for a cash consideration of $910 million.
Equinor announced its investments in Lundin in 2016 at an average weighted cost price of SEK121 a share.
Following completion of the transactions, Equinor will have a 42.6% ownership share in the Johan Sverdrup field and own a 4.9% shareholding in Lundin Petroleum.
The agreement includes a contingent payment of up to $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 billion-3.2 billion barrels of oil equivalent.