Amerada Hess has agreed to purchase Premier Oil's 40% interest in the Ujung Pangkah
field and related Production Sharing Contract (PSC) in East Java, Indonesia.
It is expected that subject to agreement by block partners, Amerada Hess, which
currently has a 36% interest in Pangkah, will assume operatorship of the block.
The purchase of Premier's interest further strengthens the company's presence
in South East Asia, following the acquisition of Triton Energy in August, which
added the Joint Development Area (JDA) between Thailand and Malaysia to existing
operations in Indonesia, Malaysia, Thailand and Vietnam.
An appraisal drilling programme earlier this year confirmed reserves of rich gas
with the possibility of developing additional oil from the structure.
Amerada Hess Managing Director, Howard Paver, said the purchase of Premier's interest
is an important strategic step in achieving the company's international growth
as well as boosting Amerada Hess' profile in Indonesia.
"We've set aggressive growth targets for Amerada Hess internationally and
the purchase of Premier's interest in Pangkah, and the fast track approach to
our work programme in South East Asia represents our commitment to meeting those
targets."
Amongst the company's recent successes in South East Asia has been the signing
of a series of agreements that will enable the sale for gas from its Jabung Block
in South Sumatra into Singapore, and the early oil and gas discovery from the
Cendor-1 well in Block PM304 in Malaysia.
The Pangkah transaction is subject to the consent of the government of Indonesia
and the co-venturers in the fields.
A map showing the location of the Ujung Pangkah field is available at: http://www.hess.com/news/pr_01sep19map.html
| Contact: | Rachel Oudyn, Amerada Hess | + 44 (0)20 7887 2675 |
| | Charles Jamieson, Premier Oil | + 44 (0)20 7730 1111 |
| | John van der Welle, Premier Oil | + 44 (0)20 7730 1111 |
