Premier Oil sheds shares to bolster development

JAKARTA, November 16, 2017 – Premier Oil is seeking buyers for a 25% stake in Indonesia’s 500-bcm (17.7-bcf) Tuna field development, CEO Tony Durant said on Thursday. The UK company plans to retain 40% in the asset, down from its current 65% stake.

Durant told Reuters that Premier Oil is planning for an appraisal drilling campaign in 2019. A final investment decision is anticipated to follow between the end of that year and the beginning of 2020. First gas is expected in 2022 at a rate of 2.83 mcm-3.4 mcm (100 mcf-120 mcf) per day.

The news follows the signing of an MoU between Premier Oil, SKK Migas and Petrovietnam on November 10 for the field’s resources. The agreement “represents a significant step forward in the potential development of the field, envisaging using a new cross-border pipeline to connect the Tuna area to the existing Nam Con Son Pipeline system in Vietnam,” Premier Oil said in a statement.

Funds generated from the divestiture are earmarked for use in the development of the Tuna field.

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