Lundin Petroleum Secures Funding for Johan Sverdrup Project
Tuesday 2 February 2016
Lundin Petroleum has entered into a committed seven year senior secured revolving credit facility of up to USD 5.0 billion, with an initial committed amount of USD 4.3 billion. This senior secured facility will provide the financial flexibility to fund Lundin Petroleum's interest in the Johan Sverdrup project in Norway.
This facility replaces the current credit facility of USD 4.0 billion which was due to reduce in availability starting in June 2016 and mature in 2019. The new amended facility matures at the end of 2022 with no reduction in committed facility size before the end of 2020, which is after the scheduled Johan Sverdrup first oil date at the end of 2019. The facility includes the option to bring in additional commitments from existing and new lenders 'the accordion option' of up to USD 700 million.
Alex Schneiter, President and CEO of Lundin Petroleum comments: 'We are very pleased to complete this financing with such a high profile group of 23 international banks, combining existing and new lenders to Lundin Petroleum. We appreciate the strong support that our lenders have shown us during this period of oil price volatility. Completion of this financing during such a difficult economic time for the industry is truly a testament to the high quality assets of the Company and to its future. This facility, along with cash flows generated from the strongest production our Company has ever achieved, will allow us to fund the Johan Sverdrup development through to first oil.'
Source: Lundin Petroleum