Premier Oil awarded exploration license offshore Indonesia

Premier Oil, together with its joint venture (JV) partners Mubadala Petroleum and Kris Energy, has been awarded the Andaman II License in the 2017 Indonesian Licensing Round. The Andaman II license is located in the underexplored but proven North Sumatra basin offshore Aceh, Indonesia.

Premier has identified numerous prospects and leads that exhibit direct hydrocarbon indicators on the existing 2D seismic data, significantly de-risking a potentially material gas play, the company stated. Premier assesses that the overall license has the potential for significant gas volumes that, in the success case, would be delivered to existing gas consumers in North Sumatra.

Going forward, the plan is to acquire 3D seismic in the initial three-year term, Premier stated.

Tony Durrant, CEO of Premier, commented, “This award is in line with Premier’s strategy of targeting low-commitment, high-impact exploration in proven hydrocarbon provinces and has the potential to deliver significant organic growth opportunities for our existing Indonesian business in the longer term.”

The JV comprises Premier (operator, 40%), Mubadala Petroleum (30%) and Kris Energy (30%).