2012

Division Ian Lundin won the struggle for the votes. But suffered a swingeing defeat as regards convincing the shareholders about his own and the board’s line. 22%, many more than expected, voted to investigate the oil giant’s activities in Sudan. Now chairman Ian Lundin is managing a divided company.

South Sudan is negotiating loans to boost the value of its currency and keep its economy afloat as foreign-exchange reserves decline after the country halted oil production, Deputy Finance Minister Marial Awou Yol said.

In a unique action several major shareholders in Lundin Petroleum are demanding an independent enquiry into the company’s operations in southern Sudan.
The company is exhorting them to shut up or sell up.

Things are shaping up for a major row at Lundin Petroleum’s shareholder meeting on Thursday. Among others, Folksam is demanding an independent enquiry into the company’s actions in Sudan. The company is refusing point-blank and is supported by Första AP-fonden and AMF.

It cannot have come as a surprise that the Lundin Petroleum AGM rejected the proposal to investigate the company’s activities in Sudan and Ethiopia ten years ago.

South Sudan is ready to negotiate an agreement on an oil dispute with Sudan that prompted the newly independent nation to shut down its crude production, Cabinet Affairs Minister Deng Alor said.

Today’s AGM of Lundin Petroleum is expected to be stormy. Folksam is demanding a review of the company’s previous activities in Sudan, but is meeting with opposition from the board and other shareholders. Among others, Första AP-fonden is intending to vote against the proposal.

The criminal investigation into Lundin Petroleum has now spread to the USA. “I am questioning people here, says public prosecutor Magnus Elving. At the same time a row is brewing between the major shareholders at the AGM today.

Lundin Petroleum, with chairman Ian Lundin, got into hot water at Thursday’s AGM. Advisers to the Norwegian state recommended voting for Folksam’s proposal.
Anyone thinking that Folksam would only receive minimal support at the Lundin Petroleum AGM was wrong. More people than expected wanted to know what Lundin’s business in Sudan and Ethiopia really involved.

Lundin Petroleum is being investigated for crimes against international law in the Sudan 10 years ago. Of more immediate interest is the fact that another Lundin company – the share price skyrocketing Africa Oil – has operations in Ethiopia, which is deeply worrying as regards human rights.