Amerada Hess Exchanges 25% of Premier PLC Shares for Indonesian Assets

Amerada Hess has entered into an agreement with Premier Oil PLC to exchange its 25% shareholding interest in Premier for a portion of Premier's interest in a producing field in Indonesia. The proposed transaction will involve the transfer by Premier to Amerada Hess of a 23% stake in Natuna Sea Block A in Indonesia, in exchange for the cancellation of Amerada Hess's 25% shareholding in Premier.

Petronas, with whom Amerada Hess entered into a strategic investment in Premier in 1999, is also exiting its 25% stake in Premier. Completion of the transactions is conditional upon shareholder, court and other approvals.

After the restructuring Natuna Block A will continue to be operated by Premier with ownership shared among four co-venturers: Premier (28.7%), Kufpec (33.3%), Amerada Hess (23%) and Petronas (15%).