• Annual Report 2009
  • 4Letter to shareholders
  • 6Words from the Chairman
  • 8Our business, vision and strategy
  • 9Market overview
  • 12Operations
  • 13Reserves, resources and production
  • 16Core area - Europe
  • 21Core area - Russia
  • 22Core area - South East Asia
  • 23Other operations
  • 24Corporate responsibility
  • 30Corporate governance report
  • 36-Internal control and risk management
  • 38-Board of directors
  • 39-Management
  • 40-Risk factors
  • 41The share and shareholders
  • 44Five year financial summary
  • 45Director's report
  • 54Income statement
  • 55Comprehensive income
  • 56Balance sheet
  • 57Statement of cash flow
  • 58Statement of changes in equity
  • 59Key financial data
  • 60Accounting principles
  • 67Notes - Group
  • 84Parent company annual accounts
  • 88Notes - Parent company
  • 90Board assurance
  • 90Financial reporting dates
  • 91Auditor's report
  • 92Reserve quantity information
  • 93Definitions

Annual Report 2009

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CORPORATE RESPONSIBILITY Performance highlights Below is an overview of some of the activities undertaken within the Group, which represents the Corporate Responsibility approach in Lundin Petroleum’s operations. FRANCE » Anti-pollution plans were developed for the Courdemanges, Dommartin-Lettrée, Granville, Soudron and Vert-La-Gravelle fields to help prevent or mitigate spills. » A Safety Management System was developed for the two 4,000 m3 storage tanks situated on the Villeperdue production site. » Films were produced for visitors and for contractors, demonstrating the HSE requirements applicable in the Company’s Paris Basin operations. INDONESIA » An environmental study was carried out by PT Ecotropica prior to the planned 2010 seismic operations on the Rangkas Block. » An environmental study commenced for the Baronang and Cakalang Blocks. » No LTIs were recorded on any of the Company’s non-operated assets in the Salawati Basin & Island; one was recorded on the Lematang Block. MALAYSIA » Lundin Malaysia, through its contractor PGS carried out five 3D seismic surveys for a total of 166’000 hours without recording a single LTI. » A fish trap scouting and clearance operation was carried out prior to the survey to reduce risks identified in the project HSE Plan. » Information and compensation meetings held with fishermen. NORWAY » Lundin Norway conducted seven well operations with four different rig contractors representing more than 500,000 hours with one LTI. » The State Pollution Control Authority approved the quality and content of Lundin Norway’s environmental report submitted and baseline study conducted in 2009. » An audit by the Petroleum Safety Authority on major accident risks resulted in no follow-up actions required. RUSSIA » The All Russian Society of Nature Conservations conducted an environmental assessment prior to the drilling of Petrovskaya-1 to ensure there would be no negative impact on the environment. » Multiple inspections were carried out by Russian industrial safety and environmental protection authorities resulting in overall positive assessments. TUNISIA » A comprehensive emissions’ campaign was carried out consisting of gas analyses of all diesel engines and boilers. » Tunisian management and VP Corporate Responsibility visited the Ikdam FPSO to review circumstances leading to the LTI and to reiterate importance of abiding by HSE rules and procedures. UNITED KINGDOM » Lundin Britain achieved another full year of LTI free days at end of 2009, Thistle had 772 LTI free days and Heather 561. » Lundin Britain has continued to emit less than its CO2 allowance under the Emissions Trading System. This year’s surplus allocation was 34,800 tons. » There were six inspections on Lundin Britain during 2009 none of which resulted in Improvement or Enforcement Notices from either the Health and Safety or the Environmental authorities. Sustainable Investments Lundin Petroleum has established in its Code of Conduct its intention to have a positive impact in its areas of operations. Its main task is to find oil and gas in an economically efficient manner, with due respect to nearby communities and environments; however the benefit from its activities can take a number of years to materialise. In the meantime, Company staff, partners or contractors are actively engaged in operational activities. In order to bridge the gap between the time the Company initiates its activities and the time these result in a beneficial impact on communities, whether through taxes, royalties or revenue sharing schemes, Lundin Petroleum has elaborated two mechanisms to promote the welfare of local communities: community development projects and corporate donations. 28 Lundin Petroleum ANNUAL REPORT 2009

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