Annual Report 2010

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CORPORATE GOVERNANCE REPORT 2010 LUNDIN PETROLEUM’S SHARE CAPITAL AND SHAREHOLDERS The shares of Lundin Petroleum are listed on the Large Cap list of the NASDAQ OMX Stockholm. At the end of 2010, the issued share capital of Lundin Petroleum amounted to SEK 3,179,105.80 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. Lundin Petroleum had at the end of 2010 a total of 39,303 shareholders listed with Euroclear Sweden. Lundin Petroleum AB itself held 6,882,638 of its own shares representing 2.2 percent of the share capital. As per 31 December 2010, the major shareholders of the Company, which held more than ten percent of the shares (and votes), were Lorito Holdings (Guernsey) Ltd and Zebra Holdings and Investment (Guernsey) Ltd, two investment companies wholly owned by Lundin family trusts, which together held 27.4 percent of the shares. In addition, Landor Participations Inc, an investment company wholly owned by a trust whose settler is Ian H. Lundin, held 3.8 percent of the shares. More detailed information regarding the shares and shareholders of Lundin Petroleum in 2010 can be found on pages 54–55. Committee Member KG Lindvall Ossian Ekdahl Anders Algotsson Ian H. Lundin Representing Swedbank Robur Fonder Första AP-fonden AFA Försäkring Lorito Holdings (Guernsey) Ltd., Landor Participations Inc. and Zebra Holdings and Investment (Guernsey) Ltd., also non-executive Chairman of the Board of Lundin Petroleum Non-executive Board member of Lundin Petroleum who acts as the Chairman of the Nomination Committee Shares represented 4.1 percent 1.8 percent 1.8 percent 31.2 percent Magnus Unger NOMINATION COMMITTEE The shareholders of the Company decide how the Nomination Committee is to be formed at each Annual General Meeting (AGM). The tasks of the Nomination Committee include making recommendations to the AGM regarding the election of the Chairman and other Board members, fees for the Chairman and the other Board members, including fees for Board committee work, election of auditors, fees for the auditors, election of the Chairman at the AGM and principles for appointment of the Nomination Committee for the AGM of the following year. The Nomination Committee members are, regardless of how they are appointed, required to promote the interests of all shareholders of the Company. Further to the Nomination Committee’s responsibility to propose members to the Board to the AGM, the Chairman of the Board undertakes each year an evaluation of the work of the Board and its members and presents the results and conclusions to the Nomination Committee. No remuneration is paid to the Chairman or any other member of the Nomination Committee for their work on the Nomination Committee. The Nomination Committee for the 2011 AGM In accordance with the principles resolved by the 2010 AGM, the Nomination Committee for the 2011 AGM consists of the following members, representing four of the larger shareholders of the Company. Magnus Unger was again unanimously elected as Chairman, a function that he has held since the Nomination Committee formed for the 2006 AGM. The fact that he is a Board member constitutes a deviation from the Code of Governance, however, he was considered by the Nomination Committee to be best suited for the task. Further, Magnus Unger and Ian H. Lundin are not deemed to be independent of the Company’s major shareholders, as explained in the schedule on pages 50–51 which also constitutes a deviation from the Code of Governance. The Nomination Committee however considered their appointment justiﬁed. The names of the members of the Nomination Committee were announced and posted on the Company’s website on 15 October 2010. The Nomination Committee held three meetings during the year and informal contacts took place between such meetings. The report of the Nomination Committee regarding its work and proposals for the 2011 AGM will be published on the Company’s website together with the notice of the AGM. The Nomination Committee for the 2011 AGM represents approximately 39 percent of the share capital of the Company. SHAREHOLDERS’ MEETINGS The Shareholders’ Meeting is the highest decision-making body of Lundin Petroleum where the shareholders exercise their voting rights and inﬂuence the operations of the Company. Shareholders may request that a speciﬁc issue be included in the agenda provided such request reaches the Board of the Company in due time. 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 on the Company’s website. The documentation for the AGM is provided on the Company’s website in Swedish and in English at the latest three weeks before the AGM. 43

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