3rd Feb 2006 07:55
Premier Oil PLC03 February 2006 PREMIER OIL PLC ("Premier") Mauritania Offshore Update - Notice of Dispute Premier advises that the following release regarding disputed amendments wasmade earlier today by Woodside Petroleum Ltd. The disputed amendments refer to the following offshore production sharingcontracts ("PSC"): PSC-A, PSC-B, Chinguetti Joint Venture, PSC-C Block 2, PSC-CBlock 6. Premier holds a 4.62% stake in PSC-A and a 9.23% stake in PSC-B and hasno interest in PSC-C. Notification of Dispute "Woodside Petroleum Ltd. has been advised by the Mauritanian Government that itdisputes amendments to four offshore production sharing contracts operated bythe company's wholly-owned subsidiary, Woodside Mauritania Pty Ltd. The amendments, which are supplementary to the production sharing contracts,were negotiated with the Ministry of Energy and Petroleum and approved by theMauritanian Government and the Mauritanian Parliament before becoming law in2005. Woodside is confident that the amendments are proper, valid and binding onall parties. Woodside Mauritania Pty Ltd is in discussions with the Mauritanian Government toexplore ways of resolving the dispute. Woodside welcomes the Government's willingness to address the matter under thedispute resolution procedures of the production sharing contracts. If thedispute cannot be resolved through discussion, the parties are likely to beginarbitration under the contract terms. The dispute does not affect the Chinguetti project which remains on schedule toproduce first oil this month. Woodside operates the Chinguetti Joint Venture and the four offshore productionsharing contracts on behalf of several joint venturers, including Hardman, BG,Premier, Roc Oil, Fusion, Petronas, Dana Petroleum, Energy Africa and theGovernment-owned Societe Mauritanienne des Hydrocarbures." ENQUIRIES Premier Oil plc Tel: 020 7730 1111 Simon LockettTony Durrant Pelham PR James Henderson Tel: 020 7743 6673Alisdair Haythornthwaite Tel: 020 7743 6676 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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