The transaction also calls for Statoil to divest from a 9 percent interest in the Edvard Grieg Oil pipeline and a 6 percent interest in the Utsira High Gas pipeline in addition to the payment of a $68 million cash consideration to Lundin Petroleum.
Following completion of the transaction Statoil will own about 68.4 million shares of Lundin Petroleum, corresponding to 20.1 percent of the shares and votes.
The effective date of the divestments of these assets is January 1, 2016.
The transaction was initiated by Sweden-based Lundin Petroleum, Statoil said.
The two companies will continue to operate independently and act as separate entities in all licenses on the Norwegian Continental Shelf (NCS).
Statoil said it remains supportive of Lundin Petroleum’s management, its Board of Directors and its strategy.
Statoil said the agreement will further strengthen its indirect exposure to core field development projects and growth assets on NCS, including the Statoil operated Johan Sverdrup fiel.
“The increased shareholding in Lundin Petroleum will be an important long term industrial investment for Statoil. The transaction also underlines our long term interest and commitment to the future of the NCS,” Executive Vice President and CFO of Statoil Hans Jakob Hegge said.
In consideration for the acquisition of the assets, Lundin Petroleum has agreed to issue Statoil 27,580,806 shares in Lundin Petroleum based upon an agreed average share price of SEK 138 per share and a SEK/USD exchange rate of 8.09.
In addition, Lundin will transfer 2,000,000 treasury shares and issue an additional 1,735,309 shares to Statoil in exchange for a cash consideration based on the market value of the shares at a ten-day volume weighted average closing share price prior to and including the date of signing.
As a consequence of the transaction Statoil will equity account its stake in Lundin Petroleum, resulting in an increase in Statoil’s reserves and production.
Statoil said it has no plan to further increase its shareholding in Lundin Petroleum.
The transaction is subject to approval at Lundin Petroleum’s Extraordinary General Meeting on May 30, 2016 and required authority approvals.
The transaction has already received unanimous support by the Lundin Petroleum Board of Directors.
The Lundin Petroleum family entities have confirmed that they will vote in favor of the transaction at the EGM.
Closing of the transaction is expected by the end of July 2016.