2nd Jul 2014 07:39
LONDON (Alliance News) - Premier Oil PLC Wednesday said that first gas under its domestic swap agreement in Indonesia began to flow on Tuesday, allowing the company to provide gas into both Indonesia and Singapore from the Natuna Sea Block A, offshore Indonesia.
The FTSE 250-listed oil and gas company said that under the swap deal, it will supply up to an additional 40 billion British thermal units of gas per day to Singapore from the Natuna block.
The additional supplies will replace Premier Oil's current flow of gas from Natuna to Singapore, freeing up the previous supply volumes to be re-directed into the Indonesian domestic gas market.
The company said the swapped volumes are being sent ahead of gas previously contracted to Batam Island in Indonesia from the Natuna site, and once domestic pipelines are constructed, these contracts will come into place.
"We are delighted that our operated Natuna Sea fields are now delivering gas into the Indonesian domestic market as well as into Singapore via this innovative commercial agreement between multiple parties in Singapore and Indonesia," Chief Executive Tony Durrant said in a statement.
Premier Oil shares were up 1.4% to 344.50 pence during early trading on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
PMO.L