Premier hopes to seal Malaysia gas sales within two months

UK based oil company Premier Oil said on Tuesday it was hoping to conclude gas sales agreement with Malaysia?s state oil company Petronas to supply gas from Premier?s gas field offshore West Natuna to Malaysia.

?We have agreed on main principles and we are looking forward to complete the deal in August or September this year,? said Premier Oil?s Indonesia unit on a sideline of BP statistical review in Jakarta.

Premier had been eyeing deal to supply 100 million cubic feet per day of gas from its Anoa field which is located within Block A production sharing contract (PSC) area in West Natuna piped to Petronas offshore facilities in the eastern state of Trengganu.

The talk had commenced since 2000.

Allan said gas reserve that lies within the Malaysia?s side of the border would also be included in the sales.

?Rather than building their own gas facilities, it?s more economic for them to tap the gas reserve on their side of the border by using our facilities,? said Allan.

Anoa gas field is located within the West Natuna Block A, which is operated by British oil and gas firm Premier Oil Plc. Anoa is located along the border of Indonesia and Malaysia?s economic exclusive zone (EEZ). Some part of gas reserves in Anoa gas field turned out to be located within Malaysia?s EEZ.

Premier has 66.7 percent working interest in West Natuna Block A PSC and is the block's operator.

Indonesia is also in the process of negoatiating with Petronas to supply 300 MMCFD of gas from South Sumatra to peninsular Malaysia.(alex)