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.