Premier Farms Into Indonesian Blocks

The UK’s Premier Oil has clinched a deal to acquire 20% stakes in the Andaman I and South Andaman production-sharing agreements (PSAs) offshore Indonesia from their operator, UAE-based Mubadala Petroleum.

The blocks cover parts of the under-explored South Andaman Sea gas play. Premier’s purchase will be closed pending clearance from Indonesian authorities, the company said on July 17.

Premier and Mubadala are already working together at the Andaman II block, which lies adjacent to Andaman I and South Andaman. Premier operates Andaman II with a 40% interest, while Mubadala has 30% and Singapore’s Kris Energy has 30%. 3D seismic data was collected at all three sites earlier this year, building on previous 2D seismic research, Premier said.

“Mubadala Petroleum will extend its partnership with Premier Oil for the exploration of the Andaman blocks offshore Aceh,” Mubadala CEO Bakheet Al Katheeri said in a company statement. “Both partners have a strong commitment to this new high impact growth area which supports Mubadala Petroleum’s growth strategy of finding and, if successful, developing gas for Indonesia’s growing markets.”