Premier Oil says that Pan Pacific Petroleum (Vietnam) Pty Ltd has agreed to acquire 15% of Premier Oil Vietnam South B.V.’s equity in Block 07/03, offshore Vietnam.

The agreement includes a funding arrangement for part of Premier’s 45% operated interest of the costs of the planned drilling programme. Upon completion of the funding obligation and other principal terms of the agreement Premier will retain a 30% operated interest in the Block 07/03 Production Sharing Contract, offshore Vietnam.

The remainder of the 55% interest in Block 07/03 will be held by Vietnam American Exploration Company, LLC. (VAMEX) (40%) and PearlOil (Ophiolite) Limited (15%).

Premier’s first well on Block 07/03 spudded on 6th May 2009. The well is being drilled on the Ca Rong Do prospect using the semi-submersible drilling unit “Hakuryu-5".

This farm-in agreement is subject to Vietnamese Government approval.

Tags: Premier Oil