Lundin Petroleum faces potential corporate fine & forfeiture of economic benefits in relation to past operations in Sudan

Lundin Petroleum has received notification from the Swedish Prosecution Authority on 1 November 2018 that the Company may be liable to a corporate fine and forfeiture of economic benefits in connection with the preliminary investigation into past operations in Sudan from 1997 to 2003.

The Swedish Prosecution Authority has issued a notification of a corporate fine and forfeiture of economic benefits against Lundin Petroleum in relation to past operations in Sudan from 1997 to 2003.

The notification indicates that the Prosecutor may seek:

  • a corporate fine of SEK 3 million; and
  • forfeiture of economic benefits from the alleged offense in the amount of SEK 3,282 million, based on the profit of the sale of the Block 5A asset in 2003 of SEK 729 million.

Any potential corporate fine or forfeiture would only be imposed after the conclusion of a trial, should one occur.

The investigation is in its ninth year and Lundin Petroleum remains convinced that there are absolutely no grounds for any allegations of wrongdoing by any Company representatives and the Company will firmly contest any corporate fine or forfeiture of economic benefits.

The timeframe for a decision as to whether and when any corporate fine or forfeiture may be imposed remains uncertain but would only be incurred at the conclusion of a trial, if any, of matters currently under investigation. Fully in line with the Company’s position that there are absolutely no grounds for any allegations of wrongdoing by any Company representatives, the Company will firmly contest any corporate fine and forfeiture of economic benefits.

In June 2010, the Swedish Prosecution Authority initiated a preliminary investigation into alleged complicity in violations of international humanitarian law in Sudan during 1997–2003. The investigation is now in its ninth year. Lundin Petroleum and its representatives have cooperated extensively and proactively with the investigation by providing information regarding the past operations in Sudan and by participating in interviews.

Lundin Petroleum remains convinced that there are absolutely no grounds for any allegations of wrongdoing by any Company representatives and strongly believes that it was a force for development in Sudan.