Lundin Petroleum agreed a seven-year $5billion revolving credit facility with lenders that will support its interest in the giant Johan Sverdrup project.
With an initial committed amount of USD 4.3 billion, the Swedish firm said it will provide the financial flexibility to fund its interest in the Johan Sverdrup, which is due to produce first oil at the end of 2019.
The new credit facility replaces the $4billion facility 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, after Johan Sverdrup first oil. The new deal includes the option to bring in additional commitments from existing and new lenders ‘the accordion option’ of up to USD 700 million.
Chief executive Alex Schneiter, said: “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.’