Lundin Petroleum, an oil and gas exploration and production company, has entered into a committed seven-year senior secured revolving credit facility of up to $5 billion, with an initial committed amount of $4.3 billion.
Lundin said that this senior secured facility would provide the financial flexibility to fund Lundin’s interest in the Johan Sverdrup project in Norway.
The Johan Sverdrup is an oil discoveries located in the North Sea offshore Norway. Lundin Norway has a 22.60% working interest in the Johan Sverdrup field. Statoil is operator with 40.0267% and the remaining partners are Maersk Oil with 8.44%, Petoro with 17.36% and Det norske oljeselskap with 11.5733% working interest.
This facility replaces the current credit facility of $4 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 $700 million, Lundin said.
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.”