Premier Sells Indonesian Stake

Premier Oil January 11 said it signed a sale and purchase agreement with Batavia Oil December 19 to sell its entire 18.75% non-operated interest in the Kakap oil and gas field in Indonesia for $3.2mn.

Completion is subject to receiving approval from the government of Indonesia, it said.

The Kakap oil and gas field was discovered by a subsidiary of Marathon Oil in 1978 and oil production began in March 1986. Premier acquired its interest in the Kakap field in December 1996 through the acquisition of Discovery Petroleum. Gas production started in 2001.

Kakap consists of 10 separate fields, which have been developed with a combination of platforms and subsea tie-backs to the Kakap FPSO, from where the gas is exported to Singapore via the WNTS and the oil is exported via tankers.

Premier's partners in the Kakap field were Star Energy (operator), PetroChina, and Pertamina.