Premier Oil (LON:PMO) has welcomed a Letter of Intent signed by its partner Sevan Marine ASA for use of the production vessel FPSO Sevan Voyageur in the Huntington field. Sevan and E.ON Ruhrgas UK E&P, as operator on behalf of the Huntington owners, have agreed to progress negotiations on a charter party for the potential use of vessel as the production unit for the Huntington field in Block 22/14 of the UK continental shelf. The negotiations will be on a mutually exclusive basis until June 30. Certain technical and financing conditions need to be satisfied during this period.
Premier is a leading FTSE 250 independent exploration and production company with oil and gas interests in the North Sea, South East Asia and in the Middle East-Pakistan regions. Their stated strategy is to add significant value for shareholders through exploration and appraisal success, astute commercial deals and optimal asset management. Premier CEO Simon Lockett said, 'We are pleased with the good progress made by the partnership with Sevan. Along with the continued progress we are seeing from our other development projects, this brings us another step closer to achieving our stated production target of 75,000 boepd from existing discovered reserves.' The proposed charter party will be for a firm fixed term of five years with options for the Huntington owners to extend.
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