Amerada Hess Agrees to Buy Premier's Stake in Pangkah

US based oil firm Amerada Hess has agreed to purchase Premier Oil's 40 percent interest in the Ujung Pangkah field and related Production Sharing Contract (PSC) in East Java, Indonesia, according to the company?s statement Wednesday.

Hess said that subject to agreement by block partners, Amerada Hess, which currently has a 36 percent interest in Pangkah, would assume operatorship of the block.

An appraisal drilling program earlier this year confirmed reserves of rich gas with the possibility of developing additional oil from the structure.

Amerada Hess Managing Director, Howard Paver, said the purchase of Premier's interest is an important strategic step in achieving the company's international growth as well as boosting Amerada Hess' profile in Indonesia.

``We've set aggressive growth targets for Amerada Hess internationally and the purchase of Premier's interest in Pangkah, and the fast track approach to our work program in South East Asia represents our commitment to meeting those targets.''

Amongst the company's recent successes in South East Asia has been the signing of a series of agreements that will enable the sale for gas from its Jabung Block in South Sumatra into Singapore, and the early oil and gas discovery from the Cendor-1 well in Block PM304 in Malaysia.

The Pangkah transaction is subject to the consent of the government of Indonesia and the co-venturers in the fields. (*)