Premier Oil announces the execution of shareholder agreements with Emirates International Investment Company (EIIC) to form two new joint venture companies to pursue the acquisition of upstream oil and gas assets across the Middle East and North Africa region. The new companies will be headquartered in Abu Dhabi.
The first joint venture to be known as PREMCO will be owned 49% by Premier and 51% by EIIC and will hold all joint venture assets which are acquired in the U.A.E. In the event of a change of control of Premier, EIIC will have a pre-emptive right to purchase Premier's 49% of this joint venture at fair market value.
The second joint venture to be known as PREMBV, will be owned 50% by Premier, 50% by EIIC, and will hold all joint venture assets which are acquired in the Middle East and North Africa region (excluding the U.A.E).
At the formation of the joint ventures, there will be no assets or profits attributable to these new entities. Future acquisitions of new assets by each joint venture will be funded by Premier and EIIC in accordance with their relevant percentage holding of that joint venture.
This joint venture partnership will enable Premier to access acquisition opportunities across the Middle East and North Africa region via EIIC's relationship networks, whilst EIIC will benefit from Premier's industry expertise and operating capabilities.
"We are delighted to have executed shareholder agreements with EIIC and look forward to working together to build a material oil and gas business across the Middle East and North Africa," Simon Lockett, chief executive, commented. "A number of potential projects have already been identified."
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