Premier Oil reported in late April 2020 that the company is finalizing the farm out of a 50% participating interest in the Tuna PSC, in the East Natuna Basin, with Zarubezhneft. The new partner also holds interests in exploration block 12/11 located across the border in Vietnamese waters.    Premier reported in early January 2020 to have signed a Heads of Agreement with a new investor for the farm out of a participating interest in the block. As part of the agreement, the new partner will fully carry Premier for its share of expenditure in a planned two-well appraisal drilling campaign in the block.  The drilling programme is intended to confirm commerciality of the Kuda Laut 1 and Singa Laut 1 gas discoveries (also known as âTuna Fieldâ) which are estimated to contain gross resources of approximately 100 MMboe. Drilling was previously planned for 2019 then delayed to 2H 2020 pending the farm out deal, but has been now postponed to 2021. Information as of January 2020 indicated that Premier has restarted the search for a suitable rig.  In November 2018, Premier Oil reportedly signed an agreement for future gas sales from the Tuna PSC to PetroVietnam Gas (PV Gas). The block operator agreed to supply gas to PV Gas at a rate of 3.3 million cubic m per day (approximately 115 MMcf/d) starting from Q3 2024.  Premier currently holds 80% operating interest in the Tuna PSC, partnering with MOECO (20%).    Background Information  The Tuna PSC was officially awarded to Premier and MOECO on 21 March 2007. The block was offered through regular tender under the second phase of the "Fifth Round" of Migas-controlled acreage releases which was formally announced on 15 August 2006 and closed on 26 December 2006. Signature bonus of USD 2 million was paid and firm commitments for the first three years of exploration included G&G studies worth USD 1 million, acquisition of 2,000 km 2D and 600 sq km 3D seismic data, and drilling two exploration wells.  Firm seismic commitments for the block were fulfilled with a 2,526 km 2D seismic data acquisition in 2008, followed by the acquisition of 850 sq km 3D seismic data in 2009. The drilling commitments were fulfilled with wildcats Gajah Laut Utara 1 and Belut Laut 1, drilled in 2011 and encountering oil and gas shows. Despite lack of commercial success, both wells confirmed a working petroleum system in the area.  Premier conducted a second drilling campaign in the block in 2014. The Kuda Laut 1 wildcat discovered oil and gas in the Miocene Arang Formation in late April 2014. The operator followed up the discovery with a sidetrack well (Singa Laut 1) targeting the deeper Oligocene Gabus Formation sandstones in an adjacent fault block. Singa Laut 1 was plugged and abandoned as a wet gas discovery on 3 June 2014.
Premier (->30% op, MOECO 20%) is finalising the farmout of a 50% interest in the Tuna PSC (999kmÂ²) off East Natuna, with Zarubezhneft.