Premier swaps upstream Pakistan assets with Shell

By the OGJ Online Staff

LONDON, May 9-- Premier Oil PLC has reached an agreement in principle with the Royal Dutch/Shell Group to arrange a swap of upstream holdings in Pakistan, the UK independent said Wednesday.

Under the terms of the deal, Premier would take over Shell's 49.9% holding in Premier & Shell Pakistan BV (PSP) in exchange for a slice of its holding in the Bhit development project and the settlement of "certain financial adjustments arising out of the original agreement."

The asset swap would give Premier, which already holds 50.1% of PSP, a 100% stake in the joint company.

Premier said the government of Pakistan has been told of the proposed deal, which remains subject to the latter's approval once final agreement has been reached between Shell and Premier.

Charles Jamieson, Premier Oil's CEO, said the asset exchange would serve to concentrate the independent company's interest in current gas production and exploration in the region.

"We are pleased to have agreed this deal with our joint venture partner, Shell, which provides Premier with greater flexibility over its portfolio and significantly enhances production and operational cashflow in Pakistan," said Jamieson.