Petronas and Premier Oil Complete Asset Swap

Petronas International Corporation Limited has completed the transfer of its 25 percent interest in Premier Oil Plc for the latter's interests in producing fields in Myanmar and Indonesia.

The transaction was announced in September last year and its successful completion today effectively cancelled PICL's 25 percent shareholding in Premier and at the same time increased PICL's interest in the Yetagun Gas Project in Myanmar from 30 per cent to 40.9 percent with PICL assuming operatorship of the Project. The transaction also resulted in PICL holding a 15 percent interest in the West Natuna Sea Block A Project in Indonesia.

PICL's involvement in the Yetagun Gas Project in Myanmar commenced when it acquired a 30 percent interest in the project from Texaco Inc. in 1997. The project consists of a production area within offshore Blocks M-12, M-13 and M-14 located in the Gulf of Martaban.

The joint venture partners for the Yetagun Gas Project signed a 30-year Gas Sales Agreement with Petroleum Authority of Thailand (PTT) in March 1997 and first gas from Yetagun was delivered to PTT in May 2000 through a cross-border pipeline built as part of the project. The West Natuna gas project in Indonesia on the other hand commenced its sale of gas to Singapore through a 650-km trunkline in January 2001.