Annual Report 2011

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GUIDING PRINCIPLES OF CORPORATE GOVERNANCE Since its creation, Lundin Petroleum has been guided by general principles of corporate governance to: » Protect shareholder rights » Provide a safe and rewarding working environment to all employees » Abide by applicable laws and best industry practice » Carry out its activities competently and sustainably » Sustain the well-being of local communities in its areas of operations Lundin Petroleum adheres to principles of corporate governance found in both internal and external rules and regulations. As a Swedish public limited company listed on the NASDAQ OMX Stockholm, Lundin Petroleum is subject to the Swedish Companies Act (SFS 2005:551) and the Annual Accounts Act (SFS 1995:1554), as well as the Rule Book for Issuers of the NASDAQ OMX Stockholm (which rules can be found on the website www.nasdaqomx.com). Lundin Petroleum is also listed on the Toronto Stock Exchange since 24 March 2011 and is as a result subject to Canadian securities regulations as well. In addition, the Company abides by principles of corporate governance found in a number of internal and external documents. The Swedish Code of Corporate Governance The Swedish Code of Corporate Governance (Code of Governance) is based on the tradition of self-regulation and acts as a complement to the corporate governance rules contained in the Companies Act, the Annual Accounts Act and other regulations such as the Rule Book for Issuers and generally acceptable behaviour in the securities market. The Code of Governance can be found on the website www.bolagsstyrning.se. The Code of Governance is based on the “comply or explain principle”, which entails that a company may choose to apply another solution than the one provided by the Code of Governance if it finds an alternative solution to be more appropriate in a particular case. The company must however explain why it did not comply with the rule in question and describe the company’s preferred solution, as well as the reasons for it. Lundin Petroleum complied with all the rules of the Code of Governance in 2011, other than in one instance as mentioned below regarding the composition of the Nomination Committee. Lundin Petroleum’s Articles of Association Lundin Petroleum’s Articles of Association, which form the basis of the governance of the Company’s operations, set forth the Company’s name, the seat of the Board, the object of the business activities, the shares and share capital of the Company and contain rules with respect to the Shareholders’ Meetings. 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 Main external rules & regulations affecting Lundin Petroleum’s corporate governance: » Swedish Companies Act » Swedish Annual Accounts Act » The NASDAQ OMX Stockholm Rule Book for Issuers » Swedish Code of Corporate Governance Main internal rules & regulations affecting Lundin Petroleum’s corporate governance: » The Articles of Association » The Code of Conduct » Policies, Guidelines & Procedures » The HSE Management System (Green Book) » The Rules of Procedure of the Board, instructions to the CEO and for the financial reporting to the Board and the terms of reference of the Board Committees and the Investment Committee its activities in an economically, socially and environmentally responsible way, for the benefit of all its stakeholders, including shareholders, employees, business partners, host and home governments and local communities. The Company applies the same standards to its activities worldwide to satisfy both its commercial and ethical requirements and strives continuously to improve its performance and to act in accordance with good oilfield practice and high standards of corporate citizenship. To mark the ten year anniversary of Lundin Petroleum, a revised Code of Conduct was approved by the Board in 2011 to confirm the Company’s continued commitment to the values and principles expressed in it and to carrying out activities in an efficient and responsible way. The Code of Conduct remains an integral part of the Company’s contracting procedures and any violations of the Code of Conduct will be the subject of an inquiry and appropriate remedial measures. Performance under the Code of Conduct is assessed 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’s Policies, Guidelines & Procedures and Management System While the Code of Conduct provides Lundin Petroleum’s ethical framework, dedicated policies, guidelines and procedures have been developed to outline specific rules and controls applicable in the different business areas. The Company has policies, guidelines and procedures covering for example Operations, Accounting and Finance, Corporate Responsibility (CR) including Health, Safety and Environment (HSE) and Anti-Corruption, Legal, Information Systems, Human Resources and Corporate Communications. The policies, guidelines and procedures are reviewed on a continuous basis and are modified and up-dated as and when required. Some of these documents can be found on the Company’s website www.lundin-petroleum.com, whereas others are only available internally. 41

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