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Equinor to sell 16% shares it holds in Lundin Petroleum for about $1.56 billion

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By Reuters
Equinor to sell 16% shares it holds in Lundin Petroleum for about $1.56 billion
FILE PHOTO: A view of Equinor's oil platform in Johan Sverdrup oilfield in the North Sea, Norway August 22, 2018. Picture taken August 22, 2018. REUTERS/Nerijus Adomaitis/File Photo   -   Copyright  Nerijus Adomaitis(Reuters)
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(Reuters) – Norwegian oil and gas firm Equinor ASA <EQNR.OL> on Sunday said it will sell a 16% stake in Lundin Petroleum AB <LUPE.ST> for about $1.56 billion, and in return acquire an additional 2.6% stake in Johan Sverdrup oilfield.

Equinor agreed to sell about 54.5 million Lundin shares at a price of 266.4 crowns ($28.22), representing a discount of about 9.6% to Lundin’s close on Friday.

It will retain a 4.9% stake in Lundin.

The company will also acquire a 2.6% direct ownership share in the Johan Sverdrup oilfield for $910 million, it added.

Equinor’s giant Johan Sverdrup oilfield is expected to start production in November this year.

At closing, the Norwegian company will hold 42.6% ownership in the oilfield.

“An increased direct ownership share (in Johan Sverdrup) gives us the opportunity to create even more value for our shareholders,” Equinor Chief Executive Officer Eldar Saetre said.

In a separate statement, Lundin said the deal will immediately add to its per share earnings.

(Reporting by Shubham Kalia in Bengaluru, Editing by William Maclean and Alexandra Hudson)