UK?s Premier Oil eyes more gas sales to Singapore

UK?s independent oil firm Premier Oil is continuing to try to sell additional gas from its Natuna Block A PSC offshore west natuna, but said focus is now shifting to Singapore buyers.

The company in its half-year report released Thursday said that discussions are continuing with Singapore potential buyers. It did not say the names of Singaporean companies.

Premier?s Natuna Block A, together with ConocoPhillips operated Block B PSC and Kakap PSC are already supplying gas via pipeline to Singapore?s SembCorp.

Premier had also had talks for years with Malaysian state oil company Petronas to supply around 100 million cubic feet per day (MMCFD) of gas from Natuna Block A to Malaysia, but thus far both parties are unable to clinch deal.

In its half-yearly report, Premier also said that during the first half of the year, production from the Anoa oil and gas field, which forms part of the West Natuna gas project, averaged 22,800 BOEPD - up from 17,500 BOEPD in the first half of 2002 due to increased demand from Singapore?s gas buyers.

The company also said that following disappointing exploration result in Natuna Block A during the first half of the year, it was evaluating some of the untested structures within the block with a view to being considered for drilling in 2004.

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)