Annual Report 2011

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CORPORATE GOVERNANCE REPORT 2011 In addition, Lundin Petroleum has a dedicated HSE Management System (Green Book), modelled after the ISO 14001 standard, which gives guidance to management, employees and contractors regarding the Company’s intentions and expectations in HSE matters. The Green Book serves to ensure that all operations meet Lundin Petroleum’s legal and ethical obligations, responsibilities and commitments within the HSE field. A more detailed description of the Green Book is available on the Company’s website www.lundin-petroleum.com. Lundin Petroleum’s Rules of Procedure of the Board The Rules of Procedure of the Board contain the fundamental rules regarding the division of duties between the Board, the Committees, the Chairman of the Board and the Chief Executive Officer (CEO). The Rules of Procedure also include instructions to the CEO, instructions for the financial reporting to the Board and the terms of reference of the Board Committees and the Investment Committee. The Rules of Procedure, which are approved annually by the Board, were reviewed in the spring of 2011 as a result of the new Code of Governance that entered into force in 2010. The amended Rules of Procedure were adopted by the Board in May 2011. 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 3.6 percent of the shares. More detailed information regarding the shares and shareholders of Lundin Petroleum in 2011 can be found on pages 58–59. 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 auditor, fees for the auditor, 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 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. Nomination Committee for the 2012 AGM In accordance with the principles resolved by the 2011 AGM, the Nomination Committee for the 2012 AGM consists of the representatives for four of the larger shareholders of the Company based on shareholdings as per 1 August 2011, see schedule below. SHARE CAPITAL AND SHAREHOLDERS The shares of Lundin Petroleum are listed on the Large Cap list of the NASDAQ OMX Stockholm and on the Toronto Stock Exchange. At the end of 2011, the issued share capital of Lundin Petroleum amounted to SEK 3,179,106 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 and net result. Lundin Petroleum had at the end of 2011 a total of 36,897 shareholders listed with Euroclear Sweden. Lundin Petroleum AB itself held 6,882,638 of its own shares, as a result of share repurchases in previous years, representing 2.2 percent of the share capital. As per 31 December 2011, the major shareholders of the Company, which held more than ten percent of the Nomination Committee for the 2012 AGM Member Kerstin Stenberg Ulrika Danielson Anders Algotsson Representing Swedbank Robur fonder Andra AP-fonden AFA Försäkring Lorito Holdings (Guernsey) Ltd., Zebra Holdings and Investment (Guernsey) Ltd. and Landor Participations Inc., 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 Total 38.2 percent 1 Shares represented as at 1 August 2011 3.6 percent 1.2 percent 1.4 percent 32.0 percent Shares represented as at 31 December 2011 3.4 percent 1.0 percent 1.0 percent 31.0 percent Independent of the Company and the Group management Yes Yes Yes Yes Independent of the Company’s major shareholders Yes Yes Yes No1 Ian H. Lundin Yes Yes Magnus Unger Total 36.4 percent For details, please see schedule on pages 54–55. 42 Lundin Petroleum ANNUAL REPORT 2011

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