Annual Report 2010

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CORPORATE GOVERNANCE REPORT 2010 At the AGM, the shareholders decide on a number of key issues regarding the governance of the Company, such as election of the members of the Board and the auditors, the remuneration of the Board, management and the auditors, including approval of the Policy on Remuneration, discharge of the Board members and the CEO from liability and the adoption of the annual accounts and appropriation of the Company’s result. Extraordinary General Meetings (EGM’s) are held as and when required for the operations of the Company. 2010 AGM The 2010 AGM was held on 6 May 2010 at the Skandia movie theatre in Stockholm. The AGM was attended by 331 shareholders, personally or by proxy, representing 51.6 percent of the share capital. The Chairman of the Board, all Board members and the CEO were present, as well as the Company’s auditors and all Nomination Committee members, with the exception of one member. The resolutions passed by the 2010 AGM include: » Re-election of Ian H. Lundin, Magnus Unger, William A. Rand, Lukas H. Lundin, C. Ashley Heppenstall, Asbjørn Larsen and Dambisa F. Moyo as Board members. » Re-election of Ian H. Lundin as Chairman of the Board. » Discharge of the Board and the CEO from liability for the administration of the Company’s business for 2009. » Adoption of the Company’s and the Group’s income statements and balance sheets and deciding that no dividend was to be declared for 2009. » Approval of the remuneration of the Board members and the auditors. » Approval of the Company’s Policy on Remuneration. » Authorisation for the Board to issue new shares and/or convertible debentures corresponding to in total not more than 35,000,000 new shares, with or without the application of the shareholders pre-emption rights, in order to enable the Company to raise capital for the Company’s business operations and business acquisitions. » Authorisation for the Board to decide on repurchases and sales of the Company’s own shares on the NASDAQ OMX Stockholm, where the number of shares held in treasury from time to time shall not exceed ﬁve percent of all outstanding shares of the Company. The minutes of the 2010 AGM are available in Swedish and in English on the Company’s website. Since the CEO does not speak ﬂuent Swedish, his presentation during the 2010 AGM was delivered in English, and not in Swedish as required by the Code of Governance. However, Swedish subtitles were provided concurrently. EGM in respect of the spin-off of the Company’s UK business An EGM was held on 22 March 2010 at Näringslivets hus in Stockholm. The EGM was attended by 149 shareholders, personally or by proxy, representing 46.8 percent of the share capital. The Chairman of the Board and two other Board members, including the CEO, as well as the Company’s auditors, were present. However, four out of seven Board members were unable to attend due to previous commitments, which thus led to a deviation from the Code of Governance. Prior to the EGM, the Board had considered the matter and had unanimously approved the transaction. The EGM resolved to approve the sale of Lundin North Sea B.V. to a newly formed UK company called EnQuest plc (EnQuest) in exchange for such number of shares of EnQuest as would be equal to 55 percent of the total outstanding shares of EnQuest, and resolved on a dividend to the eﬀect that all of Lundin Petroleum’s shares in EnQuest, corresponding to approximately 55 percent of the total number of shares in EnQuest, were distributed to the shareholders of Lundin Petroleum, including authorisation to the Board to decide upon the record date for the right to receive shares in EnQuest. The minutes of the EGM are available in Swedish and in English on the Company’s website. Since the CEO does not speak ﬂuent Swedish, his presentation during the EGM was delivered in English, and not in Swedish as required by the Code of Governance. EGM in respect of the distribution of the Company’s shares in Etrion Corporation An EGM was held on 4 November 2010 at Näringslivets hus in Stockholm. The EGM was attended by 167 shareholders, personally or by proxy, representing 44.4 percent of the share capital. Two Board members, including the CEO, were present. However, ﬁve out of seven Board members were unable to attend due to previous commitments, which thus led to a deviation from the Code of Governance. Prior to the EGM, the Board had considered the matter and had unanimously approved the transaction. The EGM resolved on a dividend to the eﬀect that all of Lundin Petroleum’s shares in Etrion Corporation (Etrion), corresponding to approximately 40 percent of the total number of shares in Etrion, were distributed to the shareholders of Lundin Petroleum, including authorisation to the Board to decide upon the record date for the right to receive shares in Etrion. The minutes of the EGM are available in Swedish and in English on the Company’s website. Since the CEO does not speak ﬂuent Swedish, his presentation during the EGM was delivered in English, and not in Swedish as required by the Code of Governance. External Auditor of the Company The Company’s external auditor is elected for a period of four years to provide for continuity in the audit process. At the 2010 AGM, no election of auditor took place as the audit ﬁrm PricewaterhouseCoopers AB was elected at the 2009 AGM 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 auditors’ fees are described in the notes to the ﬁnancial statements – see Note 8 on page 78. BOARD OF DIRECTORS Composition of the Board According to the Articles of Association, the Board shall consist of a minimum of three and a maximum of ten directors with a maximum of three deputies. As mentioned above, Ian H. Lundin, also Chairman of the Board, Magnus Unger, William A. 44 Lundin Petroleum ANNUAL REPORT 2010

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