Oil and gas company Premier Oil has completed the farm down of its interest in the Tuna PSC, offshore Indonesia, to Zarubezhneft ahead of an appraisal campaign scheduled for 2Q 2021.
Premier signed heads of terms with Russia’s Zarubezhneft in December 2019 to farm out a 50 per cent of non-operated interest in the Tuna PSC.
The fully termed farm down agreement was agreed in May 2020.
Among other things, the agreement was subject to approvals by the Indonesian government, which has now been secured.
Under the farm-down agreement, Zarubezhneft will carry Premier for its share of a two-well campaign to appraise the Tuna discoveries.
The campaign is scheduled to start in the second quarter of this year.
In addition, the two companies have also secured Indonesian government approval for a one-year extension to the exploration period of the Tuna PSC to March 2022.
Premier remains the operator of the Tuna PSC, with the company and Zarubezhneft each having a 50 per cent interest in the licence.
Premier made an oil discovery in the Tuna licence back in 2014. The Kuda Laut-1 well in Tuna PSC discovered 183 feet of net oil-bearing reservoir and 327 feet of net gas-bearing reservoir.
In other Premier-related news, the company has recently announced the proposed appointment of Alexander Krane as Chief Financial Officer of a new entity, which will be formed following the completion of a merger with Chrysaor.