Premier Atarts Pumping in Vietnam

10 October 2011

UK independent Premier Oil has started oil production at its Chim Sao field in Vietnam.

Premier operates Block 12W in the Chim Sao field, where it expects output from six wells to plateau at around 25,000 barrels of oil per day.

Gas production is expected to be around 25 million cubic feet per day.

Oil from Chim Sao, located about 310 kilometres off southern Vietnam, will be exported via shuttle tanker and its gas will connect into existing infrastructure via subsea pipeline.

Premier holds a 53.125% equity interest in the Nam Con Son Basin block with partners Santos (32%) and PetroVietnam Exploration Production Corporation (15%).

Santos has said that the joint venture plans to undertake further exploration and appraisal drilling next year, and that it expects to add "significant resources to the project in the near future". The cost of the development was previously put at $800 million by Premier.

Singapore's Ezra Holdings is providing a floating production, storage and offloading vessel to the field under a six-year contract.

Premier is an independent oil and gas exploration and production company focused on the North Sea, West Africa, the Middle East, Pakistan and Asia.

The news of first oil comes just days after Premier made a recommended takeover offer worth £221 million for EnCore Oil.

Premier's shares were trading up 10.7% to £3.71 on London's main market on Monday.