15th Sep 2008 07:00
PREMIER OIL plc
("Premier" or "the Company")
Frøy Development Update
Premier announces that together with Det norske oljeselskap (as Operator) it has submitted the Plan for Development and Operation (PDO) for the Frøy field in Norway to the Ministry of Petroleum and Energy.
The Frøy field is expected to produce 56 million barrels of oil with an initial production of 28,000 barrels of oil per day commencing in Q3 2012. Frøy will be developed using a jack-up platform with drilling and production facilities. Oil will be stored in a tank located on the seabed prior to offloading to shuttle tankers.
A detailed Heads of Agreement has been entered into with Teekay Petrojarl AS regarding the lease of a jack-up production unit. Premier is planning to enter into an agreement with Teekay whereby it will become a 49 per cent partner in the ownership of the unit.
Work will now proceed to finalise the contracts which remain conditional upon satisfactory financing and guarantee arrangements being available, key subcontracts being put in place, subsequent board approvals from Det norkse, Premier and Teekay and on ultimate approval from the appropriate Norwegian authorities.
Premier's Chief Executive, Simon Lockett, said:
"In line with the planned schedule for the project and licence, we have submitted the Plan for Development and Operation (PDO) for the Frøy field to the Norwegian Government. We continue to work on outstanding financial and contractual issues with Det norske and Teekay prior to development sanction decision."
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ENQUIRIES |
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Premier Oil plc |
Tel: 020 7730 1111 |
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Simon Lockett |
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Neil Hawkings |
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Pelham PR |
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James Henderson |
Tel: 020 7743 6673 |
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Gavin Davis |
Tel: 020 7743 6677 |
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Evgeniy Chuikov |
Tel: 020 3008 5506 |
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