19th Nov 2007 07:02
Premier Oil PLC19 November 2007 PREMIER OIL plc ("Premier") Signature of Heads of Agreement for 2nd Gas Contract into Singapore Indonesia Premier is pleased to announce that it has signed a Heads of Agreement withSembcorp Gas Pte Ltd for the sale of further quantities of gas into the Jurongpetrochemical complex in Singapore. Detailed negotiations will now commence to conclude a gas sales agreement for a"life of field" contract with plateau gas deliveries at a rate of 90 billionBritish thermal units ("BBtu") per day commencing in 2010. Premier and its Partners will be providing gas initially from the Gajah Barudiscovery with subsequent gas most likely from subsea developments at Naga andIguana, all in Premier's operated Natuna Sea Block A offshore Indonesia. Gaswill be delivered to Singapore via the existing West Natuna Transport System ("WNTS") pipeline. Premier expects to complete further agreements to deliver additional gas toIndonesia from the same contract area shortly. The initial quantities are up toa maximum rate of 35 BBtu per day, with an option for a further 20 BBtu per dayat a later date, for use in power generation in Batam. Premier (28.67%) operates Natuna Sea Block A on behalf of its Partners, Kufpec(33.33%), Hess (23%) and Petronas (15%). Simon Lockett, Premier's Chief Executive, commented: "We are delighted to announce the signature of this agreement for a second gassale into Singapore. This agreement, when taken together with the signature ofthe Heads of Agreement on North Sumatra Block A that was announced by Premierrecently, represents a significant milestone not only for this project but alsotowards delivering Premier's production target of 50,000 boepd in 2010". 19 November 2007 ENQUIRIESPremier Oil plc Tel: 020 7730 1111Neil Hawkings Pelham PRJames Henderson Tel: 020 7743 6673Gavin Davis Tel: 020 7743 6677 Notes to editors Premier is the operator of Natuna Sea Block A with a 28.67% interest and NatunaSea Block A is a 36.9% owner of the WNTS pipeline. Premier also holds an 18.75%interest in the Kakap field. Since January 2001, Premier has supplied gas from Natuna Sea Block A fordomestic power generation through the WNTS pipeline into Singapore. At present,gas production from Natuna Sea Block A is around 130 BBtu per day. On 2nd November 2007, Premier announced the signing of a Heads of Agreement fora gas sale with PT Pupuk Iskandar Muda ("PIM"), a state owned urea fertilisercompany of the Republic of Indonesia, to supply 110 BBtu per day from NorthSumatra Block A for the period of about seven years starting from 2010 to PIMfertiliser plants. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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