UK independent Premier Oil has been awarded the Andaman II exploration licence in Indonesia with its joint venture partners Mubadala Petroleum and Kris Energy.
The award is part of the 2017 Indonesian Licence Round.
The Andaman II block is located in the underexplored but proven North Sumatra basin offshore Aceh in Indonesia.
In a statement, Premier said it has identified numerous prospects and leads which exhibit DHIs (direct hydrocarbon indicators) on the existing 2D seismic data, significantly de-risking a potentially material gas play. Premier assesses that the overall licence has the potential for significant gas volumes which, in the success case, would be delivered to existing gas consumers in North Sumatra.
Premier said that going forward the plan is to acquire 3D seismic in the initial three year term.
Tony Durrant, CEO, commented: “This award is in line with Premier’s strategy of targeting low commitment high impact exploration in proven hydrocarbon provinces and has the potential to deliver significant organic growth opportunities for our existing Indonesian business in the longer term."
The JV comprises Premier (operator, 40 per cent), Mubadala Petroleum (30 per cent), and Kris Energy (30 per cent).