Premier in talks to sell more gas to SembCorp

UK-based oil company Premier Oil Plc. in in the middle of negotiation to sell more pipeline natural gas from its Natuna Block A PSC offshore West Natuna to Singapore, a BP Migas official said Tuesday.

?Premier and SembCorp. are negotiating additional 50 million standard cubic feet per day (MMCFD) of gas for around 18 years to Singapore. SembCorp. is asking for discount,? said BP Migas deputy chairman in charge of gas marketing Eddy Poerwanto.

Eddy said the additional gas would be supplied from Gajah Baru, a stranded gas field.

Under the gas sales agreement with SembCorp Gas, 325 MMCFD of natural gas are piped to Singapore for 22-years through 650-km pipeline from ConocoPhillips-operated Block B, Premier-operated Natuna Block A PSC and Star energy-operated Kakap offshore block.

Premier?s working interest in Natuna Block A PSC shrink to 28.7 percent from 66.7 percent as the result of the company?s restructuring program. Premier remains as operator of the block. (alex)