Lundin completes deal for Norwegian oil field

Lundin Petroleum, a Swedish company, said it completed an acquisition in a minority share in a Norwegian oil field from regional counterpart Statoil.

Lundin announced in early May that it would take the 15 percent stake in the Edvard Grieg field and associated infrastructure from its Norwegian counterpart Statoil. The Norwegian Ministry of Petroleum approved the arrangement June 1.

Lundin said it issued about 30 million shares to Statoil for cash considerations.

"The reason for the share issues and share transfer is to enable the acquisition of the Edvard Grieg assets," the company said in a statement.

Lundin said the acquisition of a greater stake in Edvard Grieg meant it could raise its production guidance higher for the year. Lundin discovered the field in 2007 and said the stronger hold builds on what is expected to be a productive field for years to come. The company estimates Edvard Greig holds about 187 million barrels of oil equivalents, most of which exists as oil.

Statoil, for its part, is taking a greater stake in its Swedish counterpart. Lundin said the latest issuance amounted to about 8.6 percent of the total number of company shares.

Statoil in January spent $538 million to acquire an 11.9 percent stake in Lundin. The Norwegian company at the time said the acquisition would increase its exposure to Edvard Grieg and the giant Johan Sverdrup field, a field that should generate $200 billion in revenues over the next 50 years.