Premier Oil seeks 100m boe in sales deals<\/p>\n
SINGAPORE (Dow Jones): Premier Oil PLC hopes to negotiate
\nsales contracts for 100 million barrels of oil equivalent in
\nunbooked reserves by the end of this year, Charles Jamieson,
\nPremier Oil's chief executive told Dow Jones Newswires late
\nTuesday.<\/p>\n
Among those contracts may be a second sales deal for Premier
\nOil's gas discoveries in Block A of Indonesia's Natuna Sea.<\/p>\n
Premier is working with Pertamina to find an offtaker for that
\ngas, Jamieson said, adding that any deal would likely be separate
\nfrom Conoco Inc.'s in-principle agreement to sell gas to Malaysia
\nfrom its Block B in the Natuna Sea.<\/p>\n
In late February, Premier resolved a dispute with Natuna Sea
\npartners Conoco and Gulf Indonesia Resources Ltd., over Conoco's
\nplans to pipe its Natuna gas to the Duyong platform, operated by
\nMalaysia's Petroliam Nasional Bhd.<\/p>\n
A final agreement between Conoco and Petronas is expected
\nshortly, industry sources say.<\/p>\n
Premier Oil has revised upward its reserves estimates for
\nBlock A, sources say, but Jamieson declined to disclose the new
\nfigure.<\/p>\n
Premier Oil estimated Block A proven and probable gas reserves
\nat 650 billion cubic feet, when it acquired the block from
\nChevron Corp. in 1996. In addition to the Anoa oil and gas field,
\nPremier has since made gas discoveries in the Naga, Iguana and
\nGajah Baru fields.<\/p>\n
Premier Oil no longer expects to \"bulk up\" to a US$2 billion
\ncompany through asset injections from parent companies Petronas
\nand Amerada Hess Corp., Jamieson said.<\/p>\n
Premier Oil conducted a review of possible asset transfers
\nfollowing the two companies' 1999 acquisition of a 25 percent
\nstake each in Premier Oil.<\/p>\n
Premier Oil's fixed assets amounted to 692.5 million pounds
\n(US$478 million) as of end 2000, or just over US$1 billion.<\/p>\n
Jamieson didn't reveal what steps Premier Oil would take, but
\nsaid the company would be \"proactive\" in \"closing the value gap\"
\nbetween shareholders' expectations and the current share price,
\nof 0.1725 pounds per share.<\/p>\n
He didn't rule out future acquisitions or sales.<\/p>\n
Premier Oil's net profit in 2000 was 6.1 million pounds, up
\nfrom losses of 27.7 million in 1999, according to the company's
\npreliminary results issued Monday.<\/p>\n
In 2001, Premier estimates it will produce 50,000 boe\/d,
\nexcluding take-or-pay volumes from Myanmar, up from 27,300 boe\/d
\nin 2000. Around 76 percent of its 2000 production was oil, with
\nthe remainder gas.<\/p>\n
Some increase will come from Premier Oil's 28 percent stake in
\nthe West Natuna gas project, which will reach initial contracted
\nvolumes of 325 million standard cubic feet a day by July.<\/p>",
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