14 November 2006

FIRST OIL FROM THE OUDNA FIELD


Lundin Petroleum AB ("Lundin Petroleum") and Sinochem Corporation are pleased to announce that oil production commenced from the Oudna field, offshore Tunisia on 11 November 2006. Production is from a single production well supported by a water injection well both tied back to the IKDAM Floating Production Storage Offloading (FPSO) vessel.

Initial production from natural flow is over 8,000 bopd, gross, and is forecast to shortly increase to 20,000 bopd, gross, following the start-up of artificial lift operations. Proven and probable reserves of the Oudna field are 11.5 million barrels of oil.

Lundin Petroleum and Atlantis Holding Norway AS (a subsidiary of Sinochem Corporation) are each holders of 50 percent of the Oudna field. Lundin Petroleum is the operator. ETAP, the Tunisian state oil company, has a 20 percent purchase option in the Oudna field which may be exercised up to 120 days from the commencement of production.


Ashley Heppenstall, President and CEO of Lundin Petroleum comments "The production start-up from Oudna is a major milestone for Lundin Petroleum. The Oudna field development which utilizes our part owned Ikdam FPSO is an excellent example of how smaller marginal oil fields can be profitably developed through the proactive approach of a operator such as Lundin Petroleum. The Oudna field start-up will ensure we are on target to achieve our forecast year end production of 40,000 boepd''

Mr. Han Gensheng, Vice President of Sinochem Corporation ("Sinochem") comments "The production start-up of the Oudna field demonstrates the successful cooperation between Sinochem and Lundin Petroleum and also identifies Sinochem's exploration and production business entering into a new develofpment phase. We are confident that with our joint efforts, the smooth operation of the Oudna field will not only bring benefit to the investors but also contribute to the Tunisian economy. Sinochem is willing to cooperate with our partners and develop more oil fields in Tunisia and worldwide''


Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets in Albania, Ethiopia, France, Indonesia, Ireland, Netherlands, Nigeria, Norway, Russia, Sudan, Tunisia, United Kingdom and Venezuela. The Company is listed at the Nordic Exchange, Sweden (ticker "LUPE"). Lundin Petroleum has existing proven and probable reserves of 146.1 million barrels of oil equivalent (mmboe) as at 1 January 2006.

Sinochem Corporation is a Chinese state-owned enterprise and operates globally in core areas of petroleum, fertilizer, chemicals, finance and real estate. It has been listed among the Fortune Global 500 companies for 16 consecutive years and ranked the 287th in 2005. Sinochem E&P holds oil and gas interests in Tunisia, UAE, Oman and Ecuador and has been existing reserves of 160 million barrels of oil equivalent.


For further information, please contact:
C. Ashley Heppenstall,
President and CEO
Tel: +41 22 595 10 00

or

Maria Hamilton
Head of Corporate Communications
Tel: +41 22 595 10 00