2nd Nov 2007 07:01
Premier Oil PLC02 November 2007 PREMIER OIL PLC ("Premier" or "the Company") North Sumatra Block A Heads of Agreement Indonesia Premier notes the following Jakarta Stock Exchange filing made earlier today bythe operator of North Sumatra Block A in Indonesia, PT Medco E&P Malaka: "On October 30, 2007, the Company, through its wholly owned subsidiary, PT MedcoE&P Malaka ("Medco E&P Malaka") (altogether called "MedcoEnergi" or the "Company") has signed a Heads of Agreement ("HoA") for gas sales with PT Pupuk IskandarMuda ("PIM"), a urea fertiliser state owned company of the Republic of Indonesiawhich is located at the Province of Nanggroe Aceh Darussalam, to supply gas fromBlock A (PSC) to PIM-1 AND PIM-2 installations. As stated in the HoA, the Company is targeted to supply gas for 110 BillionBritish Thermal Unit (BBTU) per day for the period of 7 (seven) years startingfrom 2010 to 2017 to PIM Fertilizer Plant. The floor price proposed by MedcoEnergi for this gas supply will be subject tothe current price of urea fertilizer. The gas will be delivered from 3 (three) fields namely Alur Rambong field, JuluRayeu field and Alur Siwah field, through a 100 km pipeline from Block A. The HoA is expected to be followed by the Sales Purchase Agreement ("SPA")before the end of the year 2007. Background: Block A is situated in East Aceh Regency, Nanggroe Aceh Darussalam Province,operated by Medco E&P Malaka. The composition of participating interests of the owners of the block is asfollows: PT Medco E&P Malaka 41.67%Premier Oil Sumatra (North) BV 41.66%Japex Block A Ltd. 16.67%" Simon Lockett, Premier's Chief Executive, commented: "We are pleased to announce the signing of the Heads of Agreement for gas fromNorth Sumatra Block A. When the project comes onstream in 2010, it will add10,000 boepd and make a significant contribution to Premier's production targetof 50,000 boepd. The increase of our equity in this Block as announced inJanuary 2007 is a good example of our acquisition strategy to add significantvalue in areas that we know well, and the Block has significant potential forfurther incremental development and exploration opportunities." 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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