Premier announces that it has entered into an agreement with Kuwait Foreign Petroleum Exploration Company KSC (“Kufpec”) to de-merge their respective interests in Pakistan from the Premier Kufpec Pakistan joint venture. The demerged field portfolios will be run as separately owned businesses by Premier and Kufpec. Premier plans to open its own separate office in Islamabad.
In September 2001, a joint venture was formed with Kufpec to hold Premier’s and Kufpec’s interests in Pakistan through a company called Premier-Kufpec Pakistan B.V.
On completion, Premier will own through wholly owned subsidiaries its working interest shares in the Kadanwari (15.79%), Zamzama (9.375%), Bhit & Badhra (6.00%), Qadirpur (4.75%), and Zarghun South (3.75%) fields.
The transaction is a restructuring of ownership from the joint venture to Premier and Kufpec. There is no transfer of consideration between the parties and there is no material financial impact on Premier as a result of the demerger.
For the year ended 31 December 2006, Premier’s working interest share of production from the above interests amounted to 12,150 boepd. Group profit before tax attributable to the interests amounted to $63.9 million. At 31 December 2006 the book value of gross assets attributable to the interests were $107.3 million.
Simon Lockett, Premier’s Chief Executive, commented:
“The demerger of Premier’s interests from the Premier Kufpec Pakistan joint venture will enable us to develop our own growth strategy in Pakistan. Direct ownership of assets will provide Premier with more flexibility in pursuing our exploration, acquisition, and financing activities. We continue to enjoy a strong working relationship with Kufpec and will remain joint venture partners in Pakistan, the Anoa field in Indonesia, and the Chinguetti field in Mauritania.”
