Premier Oil to sign final GSA with Sembcorp, PLN

Upstream oil and gas regulatory body BPMIGAS said UK's energy firm Premier Oil Plc will soon sign final gas sales agreements (GSA) with Singaporean firm Sembcorp Gas Pte Ltd and state electricity firm PT Perusahaan Listrik Negara's (PLN) Batam unit.

?The GSAs with Sembcorp Gas and PLN will be signed on April 9, 2008,? BPMIGAS deputy Chairman for Finance Eddy Purwanto said on Thursday.

The gas will come from Premier?s Gajah Baru field in Natuna Sea Block A in South China Sea, he said

In March 2008, Premier said it had signed heads of agreements with Sembcorp Gas for gas supply to Singapore and with PLN Batam and PT Universal Batam Energy for gas supply to Batam.

Premier is expected to start producing gas at Gajah Baru in 2010.

?Engineering work confirmed the development concept for the three fields supplying the gas, (Gajah Baru, Naga and Iguana) and a draft Plan of Development was submitted to the government,? Premier said.

Negotiations with the Singaporean buyer were completed on February 29, 2008 and the current focus is on conclusion of ancillary agreements, Premier said.

In November 2007, Sembcorp Gas said Premier would supply 90 billion British thermal units (bBtu) per day of natural gas at plateau from Natuna Sea Block A PSC.

According to the Singaporean firm, Premier will intially provide from Gajah Baru and then from Naga and Iguana. This is to augment the 341 bBtu per day which, under the 1999 contract, Sembcorp Gas is receiving from the West Natuna Group, in which Premier is a member.

Like the gas from West Natuna Group, the gas from Premier will be piped through the existing West Natuna Transportation System pipeline to Sembcorp's Receiving Terminal in Sakra, Jurong Island.

Premier has a 28.67 percent interest in the Natuna Sea Block A and acts as operator. The other shareholders are Kufpec (33.33 %), Hess Corp. (23%) and Petronas (15%) (godang/beranrd)