UK oil and gas company Premier Oil has completed the sale of its assets in Pakistan almost two years after first announcing an agreement to sell.
“Premier is pleased to announce that it has completed the sale of Premier Oil Pakistan Holdings BV, which comprises Premier’s Pakistan business, to Al-Haj Energy Ltd,” Premier Oil said on Thursday. The sale was first announced in April 2017, when Premier deemed Pakistan business a non-core asset.
Premier Oil said the sale completion followed the receipt of necessary approvals and finalization of working capital adjustments. Premier, in 2017 said it would use the proceeds from the Pakistan sale to cut debt.
“In total Premier has received the full consideration of US$65.6 million for the sale including deposits and completion payments paid by the buyer and net cash flows collected by Premier since the economic date of the transaction,” the oil company said.
Premier’s Pakistan business comprised non-operated equity interests in six gas producing fields in Pakistan. In 2018, production from these fields averaged 5.3 kboepd (net to Premier). This was lower compared to 6.2 kboepd in 2017.
The fall in production reflects the natural decline in the main gas fields partially offset by better than expected results achieved from the new Kadanwari development wells brought onstream.
Premier Oil in 2018 achieved record production of 80.5 kboepd, boosted mainly by contribution from its Catcher Area in the UK North Sea which reached higher than initially expected plateau rates of 66 kbopd (gross) in the fourth quarter, higher than the 50 kbopd (gross) envisaged at sanction.
Offshore Energy Today Staff
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