Premier Oil to keep Mauritanian assets

Premier Oil PLC said it will not sell its Mauritanian assets because the offer it received was too low.

Oct 18th, 2007

Uchenna Izundu
International Editor

VIENNA, Oct. 18 -- Premier Oil PLC said it will not sell its Mauritanian assets because the offer it received was too low.

"We plan to retain our interests in the producing Chinguetti field (8.23%), PSC B (9.23%) containing the Tiof and Tevet discoveries, and PSC A (4.62%) containing the Banda discovery," said Premier officials.

Premier did not identify the company with which it began negotiations after announcing the sale in March. Premier wanted to sell its interests in Mauritania because the fields had produced below expectations due to complicated reservoirs.

Petronas Australia Pty. Ltd. agreed to buy Woodside Energy Ltd.'s Mauritanian subsidiaries. Petronas will assume operation of the Mauritanian blocks in which Premier holds an interest when that transaction completes in November.

Petronas is working with Premier on the Anoa field in Indonesia and is a former strategic shareholder in the company.

Contact Uchenna Izundu at uchennai@pennwell.com.

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