Lundin Petroleum AB announced Monday that it has entered into a committed short term revolving credit facility of $300 million and received additional commitments of $135 million under a reserve-based lending (RBL) facility accordion.
Following the additional commitment under the RBL of $5 billion, Lundin Petroleum now has a total firm commitment of $4.438 billion. These credit facilities “provide further financial flexibility to fund Lundin Petroleum's growth projects in Norway”, according to a company statement. The RCF facility has a six month term, with an option to extend for a further three months.
Mike Nicholson, chief financial officer of Lundin Petroleum, said in a company statement:
"We are very pleased to complete the RCF with a group of Nordic financial institutions and secure additional commitments under the RBL accordion. Given our recently announced RBL refinancing and these new commitments we do not expect to draw under the RCF. However, we consider it prudent to secure additional liquidity following continued oil price volatility. Lundin Petroleum remains in a very robust financial position with production levels set to double in 2016 and strong cash flow generation down to very low oil prices.”
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