7th Jun 2006 07:02
Premier Oil PLC07 June 2006 PREMIER OIL PLC ("Premier" or "the Company") Signing of Revised Mauritanian PSCs Premier advises that the following release regarding revised Mauritanian PSCswas made earlier by Woodside Petroleum Ltd. The release refers to the following offshore production sharing contracts("PSC"): PSC-A, PSC-B, Chinguetti Joint Venture, PSC-C Block 2, PSC-C Block 6,Premier holds a 4.62% stake in PSC-A and a 9.23% stake in PSC-B and has nointerest in PSC-C. The changes in the PSCs are in line with the guidance previously given by theoperator and the joint venture partners. Signing of Revised Mauritanian PSCs "Woodside Mauritania Pty Ltd, a wholly owned subsidiary of Woodside PetroleumLtd., and its joint venture participants in Mauritania have signed revisedproduction sharing contracts (PSCs) for offshore zones A, B, C2 and C6. In a signing ceremony in Nouakchott overnight, representatives of Woodside, itsjoint venturers and the Islamic Republic of Mauritania formally agreed to newcontracts for the four offshore zones. The revised contracts reflect an agreement signed by Woodside and theMauritanian Government in March this year which resolved a dispute between theparties over previous amendments to the original PSCs. The major elements of the resolution, reflected in the revised PSCs, are: • Exploration periods are secured in line with previous arrangements; • A Chinguetti Project bonus of US$100 million shall be paid by the zoneB joint venturers to the Mauritanian Government approximately 14 days followingthe approval of the revised PSC B and subsequent to the gazettal of the revisedcontract; • Fiscal incentives which will provide a greater share of revenue fromthe Chinguetti project to the Mauritanian Government during periods of high oilprices; and • Establishment of an Environmental Commission, funded through a totalannual payment of US$1 million by the joint venturers during the life ofproduction from the revised PSCs. The revised PSCs come into effect after their formal gazettal in the OfficialJournal in the Islamic Republic of Mauritania. The signing of the revised contracts establishes greater fiscal certainty andallows increased co-operation between Woodside, its joint venture participantsand the Islamic Republic of Mauritania." 07 June 2006 ENQUIRIESPremier Oil plc Tel: 020 7730 1111Simon LockettTony Durrant Pelham PRJames Henderson Tel: 020 7743 6673Gavin Davis Tel: 020 7743 6677 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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