Annual Report 2009

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CORPORATE GOVERNANCE REPORT of the Company and contain rules with respect to the general meetings of shareholders. The Articles of Association can be found on the Company’s website www.lundin-petroleum.com. Lundin Petroleum’s Code of Conduct Lundin Petroleum’s Code of Conduct is a set of principles formulated by the Board to give overall guidance to employees, contractors and partners on how the Company is to conduct its activities. As an international oil and gas exploration, development and production company operating globally, the aim of the Company is to explore for and produce oil and gas in the most economically efficient, socially responsible and environmentally acceptable way, for the benefit of its shareholders, employees and co-venturers. The Company applies the same standards to its activities worldwide to satisfy both its commercial and ethical requirements. The Code of Conduct was adopted at the formation of Lundin Petroleum in 2001 when no external requirements regarding corporate governance existed. The Company decided to make its values, principles and commitment explicit in order to set the necessary framework for its ethical conduct, against which the Company could be assessed and evaluated. Compliance with the Code of Conduct is reviewed on an annual basis by the Board. The Code of Conduct can be found on the Company’s website www.lundin-petroleum.com. Lundin Petroleum had at the end of 2009 a total of 41,652 shareholders listed with Euroclear Sweden (formerly VPC), out of which 91.3 percent were physical persons and 8.7 percent were legal entities. In terms of holding, 15 percent of the share capital was held by physical persons and 85 percent by legal entities. The Swedish resident shareholders represented 95.9 percent of all shareholders of the Company and together held 44.1 percent of the share capital. 63.3 percent of the shareholders held 500 shares or less and accounted for 1.5 percent of the share capital. The ten largest shareholders of the Company together held 46.1 percent of the share capital. Lundin Petroleum AB itself further held 4,490,300 of its own shares representing 1.4 percent of the share capital. Additional information regarding the shares and shareholders of Lundin Petroleum in 2009 can be found on pages 41-43. THE GENERAL MEETING OF THE SHAREHOLDERS The General Meeting of Shareholders is the highest decision-making body within Lundin Petroleum where the shareholders may exercise their voting rights and may influence the operations of the Company. The AGM is to be held each year before the end of June at the seat of the Board in Stockholm. The notice of the AGM, which is to be given no more than six and no less than four weeks prior to the meeting, is to be announced in the Post- och Inrikes Tidningar (the Swedish Gazette) and in Svenska Dagbladet. The documentation for the AGM is provided on the Company’s website in Swedish and in English at the latest two weeks before the AGM. The tasks of the AGM include the adoption of the annual accounts and appropriation of the Company’s result, discharge of the Board members and the CEO from liability, election of the members of the Board and the auditors and deciding upon the remuneration of the Board, management and the auditors. The Board members are nominated in accordance with the nomination process adopted by the AGM of the previous year and are elected by the AGM for one year periods. Extraordinary General Meetings (“EGM’s”) are held as and when required for the operations of the Company. According to the Code, the Chairman of the Board, and as many Board members as are required for a quorum, are to be present at General Meetings of Shareholders, which entails more than half of the Board members. The CEO is also to be present at General Meetings of Shareholders. At an AGM, at least one member of the Company’s Nomination Committee, at least one of the Company’s auditors and to the extent possible, each member of the Board, are in addition to be present. Lundin Petroleum’s Policies, Guidelines and Procedures & Management System While the Code of Conduct provides the Company’s ethical framework, dedicated policies, guidelines and procedures have been developed internally to outline specific rules and controls applicable in the different business areas. The Company has policies, guidelines and procedures covering for example Operations, Accounting & Finance, Corporate Responsibility including HSE (Health, Safety and Environment), Legal, Information Systems, Human Resources and Investor Relations and External Communications. The policies, guidelines and procedures are reviewed on a continuous basis and are adjusted as and when required. In addition, Lundin Petroleum has a dedicated HSE Management System (the “Green Book”), modelled after the ISO 14001 standard, which gives guidance to Management regarding the Company’s intentions and expectations in HSE matters. The Green Book serves to ensure that all operations meet Lundin Petroleum’s legal and ethical obligations, responsibilities and commitments within the HSE field. A more detailed description of the Green Book is available at www.lundin-petroleum.com. LUNDIN PETROLEUM’S SHARE CAPITAL AND SHAREHOLDERS The shares of Lundin Petroleum started trading on 6 September 2001 on the Nya Marknaden (New Market) administered by the Stockholm stock exchange. On 2 October 2003, the shares were transferred to the O-list and on 1 July 2004, to the Large Cap list of what is now the NASDAQ OMX Stockholm. At the end of 2009, the issued share capital of Lundin Petroleum amounted to SEK 3,179,106 divided into 317,910,580 shares with a quota value of SEK 0.01 each. All shares carry the same voting rights and the same rights to a share of the Company’s assets. The 2009 AGM The 2009 AGM was held on 13 May 2009 at the Skandia movie theatre in Stockholm. The AGM was attended by 345 shareholders representing 49.2 percent of the share capital. The Chairman of the Board, all Board members, with the exception of one member, and the CEO were present, as well as the Company’s auditors and all Nomination Committee members, with the exception of one member. 31 GOVERNANCE

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