By the OGJ Online Staff
HOUSTON, Sept. 19 -- Premier Oil PLC has formed a strategic partnership with Kuwait Petroleum Exploration Co. K.S.C. (Kufpec) by selling it a 50% interest in its prior joint venture with the Royal Dutch/Shell Group for $105 million.
In May, Premier acquired Shell's 49.9% holding in Premier & Shell Pakistan BV in return for a proportion of its holding in the Bhit development project and settlement of liability issues. PSP holds all of Premier's Pakistan properties.
In the new transaction, Kufpec will also add Kufpec (Pakistan) Ltd. to the joint venture. That company holds a 15.79% interest in Kadanwari field.
Kufpec is a wholly owned subsidiary of the Kuwait Petroleum Corp.
Premier said the two transactions will allow it to realize significant cash from its portfolio and consolidate its assets with a focus on producing gas fields.
Premier also said it has sold its 40% operated interest in Ujung Pangkah field and related production-sharing contract to Amerada Hess Corp. for $30 million. Premier said that field is not core to its Indonesian business, which is mostly focused on the export of gas from the large West Natuna gas project.
Amerada Hess said it expects to be named operator of the field, in which it already held 36%. Other partners are Dana Petroleum PLC, with 12%, and Gulf Indonesia Resources Ltd., 12%.
All these transactions are subject to regulatory approval. The Ujung Pangkah deal is also subject to Pertamina approval.
