Annual Report 2009

Sivu: 96 Sivu: 94 Sivu: 95 Sivu: 93 Sivu: 92 Sivu: 91 Sivu: 89 Sivu: 90 Sivu: 87 Sivu: 88 Sivu: 86 Sivu: 85 Sivu: 84 Sivu: 83 Sivu: 82 Sivu: 81 Sivu: 80 Sivu: 79

Sivu: 78

NOTES TO THE FINANCIAL STATEMENTS OF THE GROUP continued – NOTE 19 Lundin Petroleum has, through its subsidiary Lundin Malaysia BV, entered into three Production Sharing Contracts (PSC) with Petroliam Nasional Berhad, the oil and gas company of the Government of Malaysia (“Petronas”), in respect of the licences PM308A, PM308B and SB303 in Malaysia. BNP Paribas, on behalf of Lundin Malaysia BV has issued bank guarantees in support of the work commitments in relation to these PSCs amounting to MUSD 101.9 In addition, BNP Paribas have issued additional bank guarantees to cover work commitments in Indonesia amounting to MUSD 15.0. It is expected that the Group’s ongoing development and exploration expenditure requirements will be funded by the Group’s operating cash flows and loan facility. No loan repayments are required for the credit facility in 2010 and 2011. Financial instruments by category The accounting policies for financial instruments have been applied to the line items below: Financial Loan liabilities receivables Derivatives valued at 31 December 2009 and other Availableused for amortised Expressed in TSEK receivables for-sale hedging cost Assets Other shares and participations Long-term receivable Trade receivables Short-term loan receivable Derivative instruments Cash and cash equivalents 550,372 1,538,624 Liabilities Trade Payables Bank loans Other non-current liabilities Derivative instruments Short-term debt 72,560 72,560 230,575 4,349,693 145,792 3,883,670 89,656 230,356 1,647 172,498 574,452 241,302 1,647 230,356 31 December 2009 Expressed in TSEK Assets Available for sale financial assets - Equity securities Derivatives used for hedging Level 1 Level 2 Level 3 156,061 1,647 156,061 1,647 74,295 74,295 Liabilities Derivatives used for hedging 72,560 72,560 The outstanding derivative instruments can be specified as follows: Fair value of outstanding derivative instruments in the balance sheet: Interest rate swaps Foreign exchange forward contracts Total Non-current Current Total 31 December 2009 Assets 1,647 – 1,647 1,647 – 1,647 Liabilities 72,560 – 72,560 22,218 50,342 72,560 31 December 2008 Assets – 3,438 3,438 – 3,438 3,438 Liabilities 94,282 265,073 359,355 54,896 304,459 359,355 For risks in the financial reporting see the section Internal control and risk management of financial reports in the Corporate Governance report on pages 36–37 for more information and for operational risk factors see page 40 for more information. NOTE 20 – DEFERRED FINANCING FEES The deferred financing fees amounted to TSEK 53,475 (TSEK 75,748) and related to the costs incurred for establishing the bank credit facility and are being amortised over the estimated usage of the facility. In 2009 amortisation expenses amounted to TSEK 19,354 (TSEK 11,415). See also Note 10. NOTE 21 – OTHER FINANCIAL ASSETS Loan receivables and other receivables Derivatives used for hedging Financial liabilities valued at amortised cost Other financial assets amount to TSEK 150,042 (TSEK 169,928) and mainly represent VAT paid on exploration and development costs in Russia that is expected to be recovered from VAT received on future project revenues. 31 December 2008 Expressed in TSEK Assets Other shares and participations Long-term receivable Trade receivables Short-term loan receivable Derivative instruments Cash and cash equivalents Available -for-sale NOTE 22 – INVENTORIES (TSEK) 121,634 22,255 581,978 53,893 3,438 448,855 1,106,981 121,634 3,438 Drilling equipment and consumable material comprises: 1 January 276,443 4,339,769 359,355 53,893 359,355 4,670,105 Disposals Purchase Used in production Currency translation difference Provisions 31 December Inventories comprise: Hydrocarbon stocks Drilling equipment and consumable materials 31 December 2009 113,272 81,527 194,799 31 December 2008 103,735 102,426 206,161 2009 102,426 -3,365 42,658 -51,405 -6,706 83,608 -2,081 81,527 2008 98,424 – 22,671 -28,522 10,252 102,825 -399 102,426 Liabilities Trade Payables Bank loans Derivative instruments Short-term debt For financial instruments measured at fair value in the balance sheet, the following fair value measurement hierarchy is used: - Level 1: based on quoted prices in active markets; - Level 2: based on inputs other than quoted prices as within level 1, that are either directly or indirectly observable; - Level 3: based on inputs which are not based on observable market data. Based on this hierarchy, financial instruments measured at fair value can be detailed as follows: 76 Lundin Petroleum ANNUAL REPORT 2009

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