22nd Nov 2005 08:00
Premier Oil PLC22 November 2005 PREMIER OIL PLC ("Premier") Premier to Proceed with Phase-2 of Zamzama Gas Field Development Premier is pleased to announce today the approval of the Phase-2 development ofthe Zamzama gas field in Pakistan. This follows the signing of separateagreements between the Zamzama Joint Venture Partnership, the Government ofPakistan and the Sui Southern Gas Company Limited. The Zamzama Phase-2 development, operated by BHP Billiton, is scheduled forcompletion in the third quarter of 2007 and will increase plant productioncapacity by another 50% to a total of 450 million cubic feet of gas per day.Total capital costs for the project is estimated at US$120 million (Premiershare US$ 11.3 million). The Zamzama Phase-2 development represents accelerated commercialisation ofadditional gas reserves confirmed as a result of successful field appraisal. Thecurrent field reserves are estimated at 2.3 trillion cubic feet of gas, makingZamzama the fourth largest gas field in Pakistan. Gas production from theZamzama field commenced in March 2001 through an early production system. Thiswas followed by the full field development coming on line in July 2003. Zamzamacurrently supplies on average 270 million cubic feet of gas per day to itscustomers, the Sui Southern Gas Company and Sui Northern Gas Pipelines Limited. A new 40 kilometre pipeline will also be installed which will allow thetransportation of condensate produced at the Zamzama field for direct injectioninto the Karachi-Multan crude oil pipeline to PARCO refinery, thereby reducingreliance on the current mode of road transport. At the completion of Phase-2development, the condensate production from Zamzama field will reachapproximately 3,000 barrels per day. Simon Lockett, Chief Executive of Premier, said: "This development will result in an increase in Premier's production by around2,500 barrels of oil equivalent per day and marks a milestone in the progress ofPremier's long term business in Pakistan. Gas commercialisation projects inPremier's other fields in Pakistan, Bhit, Qadirpur and Kadanwari, are beingactively pursued." 22 November 2005 ENQUIRIESPremier Oil plc Tel: 020 7730 1111Simon LockettTony Durrant Pelham PR Tel: 020 7743 6673James Henderson Background For Editors: Premier Oil plc is a leading independent oil and gas company with producinginterests in the UK, Indonesia and Pakistan and an oil development inMauritania. Exploration and appraisal is ongoing in the UK, South and South EastAsia and Africa. The 2005 drilling programme of approximately 12 wells is well progressed. Priorto the Labeidna-1 well, three successful wells have been completed earlier thisyear; the first, a flow test on an appraisal well on the Tiof field inMauritania; the second, a discovery and flow test from the Al Amir-1 explorationwell in Egypt; and the third, a discovery and appraisal at the Tevet-2 well inMauritania. Further wells are planned to be drilled in the remainder of 2005 andin the first half of 2006 in Mauritania, Egypt, Indonesia, Guinea Bissau,Vietnam and the UK. The current partners and interests in the Zamzama field are: Zamzama FieldBHP Petroleum (Pakistan) Pty Ltd (Operator) 38.50%Government Holdings (Private) Ltd 25.00%PKP Exploration Ltd* 18.75%Eni 17.75% * PKP Exploration Ltd is 100% owned by Premier-KUFPEC Pakistan B.V. Premier andKUFPEC each hold 50% of Premier-KUFPEC Pakistan B.V. Premier's effectiveinterest in Zamzama is 9.375%. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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