PetroVietnam has exercised a back-in right to 15% of Premier Oil’s Block 12W off south-east Vietnam containing the under-development Chim Sao and Dua oil project.
Premier said that PetroVietnam Exploration & Production (PVEP) had issued a participation notice to take up the 15% equity in return for payment of past costs.
As a result Premier's interest in Block 12W will be reduced to 31.875% from 37.5%.
The other partners in Block 12W are Santos (37.5%) and Delek Energy (25%), but their equity is likely to be less following the back-in.
Premier said the development plan for Chim Sao was re-engineered from a double to a single platform development and had resulted “in significant cost reductions”.
Construction work on the wellhead platform is continuing at Petroleum Technical Services Corporation in Vung Tau.
The issue of who will supply a leased floating production, storage and offloading vessel is still unresolved
Not sure if this will happen with us, but in this case the 15% appeared to be covered by all.
PPP Price at posting:
46.5¢ Sentiment: None Disclosure: Held
