Lundin Petroleum AB has entered into a committed short-term revolving credit facility (RCF) of US$300 million and received additional commitments of US$135 million under the reserve-based lending (RBL) facility accordion.
With this additional commitment under the RBL of US$5 billion, Lundin Petroleum now has a total firm commitment of US$4.438 billion. These credit facilities provide further financial flexibility to fund Lundin Petroleum's growth projects in Norway. The RCF facility has a six-month term, with an option to extend for a further three months.
Lundin CFO Mike Nicholson commented, "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.”