Further to the signing of Heads of Agreements for gas sales from their operated West Natuna Sea Block A in Q4 2007; Premier Oil announce that three fully termed Gas Sales Agreements have been signed in Jakarta.

The three contracts are with Sembcorp Gas Pte Ltd. (Sembcorp), PT Pelayanan Listrik Nasional Batam (PLN) and PT Universal Batam Energy (UBE) for a total volume of 125 billion British thermal units per day ("BBtud") with options for a further 13 BBtud.

The contracts are "life of field" contracts and deliveries are expected to commence from the Gajah Baru field on West Natuna Sea Block A, offshore Indonesia in 2010.

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 have progressed from Heads of Agreement to fully termed Gas Sales Agreements in such a short period of time. Indonesian regulatory approval of the plan of development for Gajah Baru has been received and we will progress this significant development towards first gas targeted for 2010. This underlines Premier’s growth profile to 50,000 boepd by the end of 2010.

We are also pleased to note the signing of a Gas Sales Agreement between Medco E&P Malaka and PLN for the supply of 15bbtu/d of gas from North Sumatra Block A PSC in Indonesia in which Premier holds a 41.67% stake."

Tags: Premier Oil