Premier Oil plc has signed a letter of agreement for sale of gas from West Natuna A block off Indonesia and is preparing to begin field development early next year.
Premier is operator and 66.67% shareholder in Natuna Sea Block A, which is to be developed along with nearby Block B and Kakap concession discoveries. Conoco Indonesia Inc. operates Block B.
Indonesia's state oil firm Pertamina is leading a project to develop the three areas, to supply 325 MMcfd of gas by pipeline to Singapore beginning in mid-2000.
Pertamina has signed a letter of intent with Singapore's Sembawang Engineering & Construction Pty. Ltd. for supply of 2.5 tcf of gas to Singapore for 22 years.
Premier has also disclosed details of a new oil discovery off Indonesia on the Kakap block in which it has an 18.75% interest.
The 1 Nelayan new pool wildcat cut eight oil-bearing sands with an estimated minimum net pay section of 70 m.
The find is located near the existing KG platform in Kakap field and is expected to be developed as a satellite.
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