Premier Oil, SembCorp in talks over additional gas supply to Singapore

UK-based independent oil firm Premier Oil is intensifying talks with Singapore?s SembCorp to sell additional gas from its Natuna Block A PSC offshore Natuna Sea to the latter, a BPMIGAS official said.

?I hope this time they can clinch deal to sign definitive agreement. The talks had been ongoing for several years,? said BPMIGAS deputy chairman in charge of marketing Eddie Poerwanto on Wednesday.

Premier and SembCorp are negotiating additional 50 million standard cubic feet per day (MMCFD) of gas for around 18 years to Singapore.

SembCorp had been asking for price reduction, arguing that the gas would be coming from a stranded field and would have nowhere to go other than to Singapore. But Eddie said BPMIGAS has vehemently against the price reduction proposal.

The additional gas would come from Gajah Baru gas field of Natuna Block A PSC.

Premier, together with ConocoPhillips and Star Energy, has secured a 22-year gas contract to supply with 325 MMCFD of natural gas from West Natuna's PSCs to Singapore through a 650-km pipeline.

Premier operates Natuna Block A PSC with a 28.7 percent working interest. (godang)