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ONLF requests Lundin to distance its self from Ethiopia’s oil

Ogaden National Liberation Front (ONLF)

November 12, 2006

FROM: Ogaden National Liberation Front (ONLF)

TO: Ian H. Lundin Chairman

Ashley Heppenstall Managing Director

Alexandre Schneiter, Executive Vice President & Chief Operating Officer

Geoffrey Turbott Finance Director

Copies: International Media

RE: Production Sharing Contract With The Ethiopian Government For Exploration Activities In Ogaden

Our organization has been made aware of the signing of a Production Sharing Contract (PSC) between Lundin Petroleum and the Ethiopian government on November 7th 2006. The exploratory activities planned specifically by Lundin East Africa BV in designated areas of our homeland which you refer to as “blocks 2 & 6” are both unrealistic and unwelcome by the people of Ogaden.

While you may have been given security guarantees by the Ethiopian government it is imperative that you understand that the regime is not now nor has it ever been in effective control of the Ogaden. The Ogaden has been the scene of armed conflict for a number of decades between the central government of Ethiopia and ethnic Somalis. This conflict makes for an insecure environment for any mineral exploration to occur. Our organization, the Ogaden National Liberation Front (ONLF) and the armed forces of the Ethiopian regime engage on a regular basis throughout Ogaden. The areas covered by the PSC signed between you and the Ethiopian regime are well within our scope of military operations and as such the security of your operations cannot be guaranteed. We therefore strongly advise you against this planned investment given the current conflict which exists between our troops and those of the Ethiopian regime.

While we have no dispute with Lundin Peteroleum, The ONLF as a matter of policy cannot permit the exploitation of mineral resources in Ogaden until such time that a legitimate form of self-government exists in Ogaden.

We have made this clear to several companies which have expressed a similiar interest in Ogaden including Petronas of Malaysia as well as Gail and the Gujarat State Petroleum Corporation of India among others.

While we have made shown our willingness to negotiate with the Ethiopian regime in the presence of a independent third party and in a neutral third country venue with no pre-conditions placed on such talks by either side, the regime has repeatedly refused. The Ethiopian regime has chosen instead to continue the systematic persecution of ethnic Somalis in Ogaden including the arbitrary arrest and physical abuse of women, children and the elderly. We hope that you will reconsider your planned activities and choose not to be a party to a long standing armed conflict between the Ethiopian regime and the Somali people of Ogaden.

We also hope that you will seek to diassociate yourself from a regime that is currently engaged in gross violations of human rights in Ogaden.


Annexe by ST.

Lundin Petroleum signs production sharing contract for two blocks in Ethiopia

Nov 7, 2005 (STOCKHOLM) — Lundin Petroleum AB said it has signed a production sharing contract for two blocks in the onshore Ogaden Basin, Ethiopia.

The contract covers Blocks 2 and 6 and spans over 24,000 square kilometres just west of the Calub and Hilala oil and gas discoveries.

Lundin Petroleum said it holds a 100 pct in the contract area for the duration of the exploration period but the Ethiopian Government has an option to participate with up to a 10 pct interest following any commercial discovery.

Lundin Petroleum said to date, no wells have been drilled in Blocks 2 or 6, but indications of light oil, gas and condensate have been documented in well tests and surface seeps to the south and east of the Blocks.

(AFX)

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