Annual Report 2009

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CORPORATE GOVERNANCE REPORT THE MANAGEMENT AND THE AUDITOR Management and Company structure The President and CEO of the Company, who is also a member of the Board of Directors, is responsible for the management of the day-to-day operations of Lundin Petroleum. The CEO reports to the Board and is responsible for ensuring that the Board receives, in accordance with the Board’s instructions to the CEO, all relevant information to ensure that the Board’s decisions are well-founded. The CEO is assisted in his functions by Group Management. The main responsibility for the operations of subsidiaries, and for ensuring that all of Lundin Petroleum’s internal rules and principles are followed by all Group companies and employees, rests with the manager of each subsidiary (General Manager/ Managing Director), as well as with Group Management. General Managers/Managing Directors regularly report on all commercial, technical, HSE, financial and legal issues to Group Management. The remuneration of Management in 2009 and the Company’s Policy on Remuneration are described in the notes to the Annual Report – see Note 42 on page 80. Management Investment Committee The Board of Directors established the Management Investment Committee in 2009 to assist the Board in investment related decisions. The Investment Committee’s tasks include reviewing and evaluating investment proposals, annual budgets, supplementary budget approvals, commitments, relinquishment of licences etc, as well as reviewing and approving the Group’s five year Asset Business Plan. The Investment Committee reports to the Board and is composed of the Company’s CEO, COO, SVP Operations and CFO. Auditor Elected at the 2009 AGM At the 2009 AGM, the audit firm PricewaterhouseCoopers AB was elected as the auditor of the Company for the period until the 2013 AGM. The auditor in charge is the authorised public accountant Bo Hjalmarsson. The Audit Committee liaises with the Company’s auditors on a continuous basis during the year and in addition, the Board of Directors meets at least once a year with the auditors without Management, including the CEO, present at the meeting. The Auditor’s fees are described in the notes to the Annual Report – see Note 8 on page 68. Board of Directors Audit Committee Compensation Committee Independent of the Company and the executive Management Yes1 No3 Yes Yes Yes Yes Yes Independent of the Company’s major shareholders Name Ian H. Lundin C. Ashley Heppenstall Lukas H. Lundin William A. Rand Magnus Unger Asbjørn Larsen Dambisa F. Moyo 1 Function Chairman President & CEO Director Director Director Director Director Elected 2001 2001 2001 2001 2001 2008 2009 Yes Yes Yes Yes Yes Yes Yes7 2 3 4 5 6 7 8 Ian H. Lundin has been regularly retained by Management to perform remunerated work duties which fall outside the scope of the regular work of the Board, e.g. in connection with the Company’s major transactions. It is the Nomination Committee’s opinion that despite his work, he remains independent of the Company and the executive Management. Ian H. Lundin is the settler of a trust that owns Landor Participations Inc., an investment company that holds 12,038,956 shares in the Company, and he is a member of the Lundin family that holds, through a family trust, Lorito Holdings (Guernsey) Ltd. which holds 76,342,895 shares in the Company and Zebra Holdings and Investment (Guernsey) Ltd which holds 10,844,643 shares in the Company. C. Ashley Heppenstall is the President & CEO of Lundin Petroleum. Lukas H. Lundin is a member of the Lundin family that holds, through a family trust, Lorito Holdings (Guernsey) Ltd. which holds 76,342,895 shares in the Company and Zebra Holdings and Investment (Guernsey) Ltd which holds 10,844,643 shares in the Company. William A. Rand is in the Nomination Committee’s opinion not deemed independent of the Company’s major shareholders since he holds directorships in a number of listed companies in which the Lundin family, through a family trust, holds ten percent or more of the share capital and voting rights. Magnus Unger is in the Nomination Committee’s opinion not deemed independent of the Company’s major shareholders since he holds directorships in a number of listed companies in which the Lundin family, through a family trust, holds ten percent or more of the share capital and voting rights. Dambisa F. Moyo has been a member of the Board and the Compensation Committee as from 13 May 2009. Dambisa F. Moyo is a board member of the Lundin for Africa Foundation, a Canadian registered charity founded by the Lundin family. It is the Nomination Committee’s opinion that despite her directorship in this charitable foundation, Dambisa F. Moyo remains independent of the Company’s major shareholders. 35 GOVERNANCE No2 No3 No4 No5 No6 Yes Yes8

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