November 5th, 2018 | by Egbert Wesselink

From the Lundin Petroleum website, November 2018

Lundin Petroleum facing a € 318 million penalty

The Swedish Prosecution Authority on 1 November 2018 notified Lundin Petroleum A.B. that the Company may be liable to a corporate fine and forfeiture of economic benefits of SEK 3,285 (app. € 318 million) for involvement in war crimes and crimes against humanity. The amount equals the 2019 cash dividend to Lundin’s shareholders.

The Prosecutor’s calculation is based on the company’s 2003 profit of SEK 729 million over its Sudanese operations.  The members of the Lundin Consortium and their investors were crucial actors and the main benefactors of the oil war. In 2013, PAX estimated the damage of the oil war in Lundin Consortium’s concession area at € 1.519 million and argued why Lundin Petroleum should make a reservation of SEK 5 billion to compensate the victims of the many crimes that accompanied the operations of the Lundin Consortium. The justifyable contribution by OMV and Petronas to undo the damages may amount to € 300 million each. The PAX calculations do not include interests which may quadruple these amounts.

Under Swedish law, penalties are paid to the national treasury and not usually allocated to a specific pupose. It would make sense, however, to make an exception in the Lundin case and not leave those who suffered in the cold.

 




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