Oil & Gas Company Directory

Company Overview: Lundin Oil AB

Company Information
Lundin Oil AB
Hovslagargatan 5
Stockholm, SE-111 48

Contact Information
Website: www.lundinoil.com
Phone: +46-8-440-5450
Phone: +46-8-440-5459

Lundin Oil AB is a Swedish independent oil company exclusively engaged in the exploration and production of hydrocarbons with a geographical focus on Europe, North and East Africa, the Middle East and South East Asia.

Lundin Oil's sales products consist of crude oil, condensate, natural gas liquids (propane and butane) and natural gas (methane). The sales products are determined from the production of the crude oil and gas mix (hydrocarbon mix) that are produced from the respective fields. The split takes place at the processing facilities where the crude oil and gas mix is classified, allocated and sold.

Markets and Pricing
Lundin Oil sells crude oil, condensate and natural gas liquids (propane and butane) at world market prices. Lundin Oil is not dependent on any particular market, but sales take place, together with operators and other partners from those fields in which Lundin Oil holds an interest, at current world market prices, according to valuation models applicable to each field.

The pricing of different crude oils is rather complicated and is primarily done with respect to oil quality, transportation cost and refining cost. The price is expressed in USD per barrel where one barrel corresponds to approximately 159 litres. Sometimes the amount of oil is expressed in tonnes, for example when oil is being transported by tanker. Different oils have different densities and thus the weight of one barrel of crude can vary from another. As a rule of thumb for the most common crudes, 7.33 barrels correspond to one tonne.

Natural gas (methane) is dependent on proximity to a specific market. In the North Sea, Lundin Oil's natural gas is primarily sold to British Gas and is entered in the UK gas grid. Part of the production is sold according to long term contracts, and other parts of the production are sold at prevailing spot prices for UK natural gas.

Quick Facts

Line of Business: Exploration and production
Ownership: Public
Stock Exchang: NASDAQ
Stock Ticker: LOILY