Lundin Petroleum
The Company » Corporate governance


WORDS FROM THE CHAIRMAN

As Chairman of the Board of Directors of Lundin Petroleum, my primary duty is to ensure that the Board performs its functions to provide guidance to, and oversee the work of, Group management. For the Board to function efficiently, it is critical that the flow of information is smooth, timely and of course comprehensive without being excessive. My work as Chairman has been made straightforward by the excellent quality and very high standard of the information provided by Group management. When a company is as active as Lundin Petroleum in terms of evaluating and acquiring new projects, it is very important to have a short response time to consider and respond to management proposals. The Board has to be not only reactive, but have insightful input in the decision-making process. The Board has to be able to rely on Group management and have full confidence in their ability, without being complacent in any way. I attach a lot of importance to open lines of communication and informal interaction between the Board and Group management at all levels. Full transparency between the Board and Group management is a must in any public company, but for Lundin Petroleum it is second nature. Written rules and procedures are of course there to guide the Board, putting on paper practices which have always been applied. To me, these reflect good corporate governance, common sense and the high level of ethical conduct that is set in stone within Lundin Petroleum. It has been an honour and a most fulfilling experience to serve as Chairman of Lundin Petroleum since 2002 and I look forward to doing so well into the future, if this is the wish of our shareholders.

IAN H. LUNDIN, Chairman of the Board


Since its creation in 2001, 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
 
 

Corporate Governance Reports
PDF 2012 report
PDF 2011 report
PDF 2010 report
PDF 2009 report
PDF 2008 report


Governance Structure
Governance structure
Click image to view
GOVERNANCE STRUCTURE

The object of Lundin Petroleum's business is to explore for, develop and produce oil and gas and to develop other energy resources, as laid down in the Articles of Association. The Company aims to create value for its shareholders through exploration and organic growth, while operating in an economically, socially and environmentally responsible way for the benefit of all stakeholders. To achieve this value creation, Lundin Petroleum applies a governance structure that favours straightforward decision making processes, with easy access to relevant decision makers, while nonetheless providing the necessary checks and balances for the control of the activities, both operationally and financially. Lundin Petroleum is committed to applying good corporate governance practices that are best suited for the Company and its activities, to ensure that the Company is managed in an effective manner, in the best interests of all shareholders, for continued delivery of value creation for shareholders.

The governance structure of Lundin Petroleum can be summarised in the following chart. <Governance Structure>

Lundin Petroleum adheres to principles of corporate governance found in both internal and external rules and regulations.

Main external rules & regulations affecting Lundin Petroleum’s corporate governance:

  Swedish Companies Act (SFS 2005:551)
  Swedish Annual Accounts Act (SFS 1995:1554)
  The NASDAQ OMX Stockholm Rule Book for Issuers (available on www.nasdaqomx.com)
  The Toronto Stock Exchange Rule Book
  Swedish Code of Corporate Governance (available on www.bolagsstyrning.se)


Main internal rules & regulations affecting Lundin Petroleum’s corporate governance:


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 do not contain any limitations as to how many votes each shareholder may cast at Shareholders' Meetings, nor any provisions regarding the appointment and dismissal of Board members or amendments to the Articles of Association.

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 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 to continuously improve its performance and to act in accordance with good oilfield practice and high standards of corporate citizenship. The Code of Conduct is 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.

Lundin Petroleum's Policies, Guidelines and 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, Health, Safety and Environment (HSE), Community Relations, Anti-Corruption, Human Rights, Legal, Information Systems, Human Resources (HR) 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 this website whereas others are only available internally.

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.

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 are approved annually by the Board.

 

  
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