Deal Insight
Equinor ups Johan Sverdrup stake as Lundin redeems 16% of its equity
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Report summary
Equinor and Lundin Petroleum have announced an agreement where Equinor will divest 16% of its holding in Lundin Petroleum, in exchange for a 2.6% stake in Johan Sverdrup and a cash consideration of US$650 million. We calculate that each deal has been done at a hefty premium to our underlying base case valuation. However, quality assets attract a premium in Norway and the fact that both companies have validated higher valuations demonstrates their confidence in the underlying assets.
Table of contents
- Executive summary
- Transaction details
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Upstream assets
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Assets acquired by Equinor
- Johan Sverdrup (2.6%)
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Assets acquired by Lundin
- Johan Sverdrup
- Edvard Grieg
- Alvheim
- Other assets
- Exploration
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Assets acquired by Equinor
- Deal analysis
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Upsides and risks
- Upsides
- Risks
- Strategic rationale
- Oil & gas pricing and assumptions
Tables and charts
This report includes the following images and tables:
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Deal analysis: Table 1Deal analysis: Table 2Deal analysis: Table 3
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Deal analysis: Table 4Oil & gas pricing and assumptions: Table 1Oil & gas pricing and assumptions: Table 2Upstream assets: Table 1Upstream assets: Table 2
What's included
This report contains:
