Petronas-Premier Oil's deal

Petronas-Premier Oil's deal

LONDON (Reuters): British oil exploration and production group Premier Oil Plc on Friday said it was selling a 25 percent stake in the company to state controlled Malaysian oil group Petronas for 101.2 million pounds (US$166.6 million) via an issue of new shares.

It said the aim was to make itself into a primary Asian investment vehicle for upstream investment by Petronas and U.S. based Amerada Hess, its other 25 percent shareholder.

Under the terms of the alliance Petronas subscribes for 101.2 million pounds of new equity at 25 pence per share and Amereda Hess subscribes for 34.8 million pounds of new equity at the same price.

Premier said the alliance will strengthen its finances, give it an increased competitive advantage in Asia and offer potential synergies with Petronas and Amerada.

"The alliance will not only allow us to continue the development of our existing portfolio but also position us as the leading Asia independent with unique skills, partnerships and relationships in the region," said Premier Chief Executive Charles Jamieson.