Premier Oil plc announced on 28 March 2019 that it has completed the sale of âPremier Oil Pakistan Holdingsâ, which comprises Premierâs Pakistan upstream business, to Al-Haj Energy Ltd after receiving necessary approvals and finalisation of working capital adjustments. Premier received the full consideration of USD 65.6 million for the sale, including deposits and completion payments, from Al-Haj and it also collected the net cash flows since the economic date of the transaction â 1 January 2017.  Premier held non-operated interests in six gas producing onshore fields in the country which include Qadirpur, Kadanwari (including Kadanwari 14), Zamzama, Bhit, Badhra and Zarghun South. Oil and Gas Development Company Ltd (OGDCL) operates Qadirpur field which is one of the major producing field in the country. Kadanwari, Bhit and Badhra fields are operated by ENI, Zamzama field is operated by Tri Resources whereas Mari Petroleum Pakistan Ltd (MPCL) operates the Zarghun South field.          Field   Name         Operator         Premier   Interest             Badhra            Eni            6%             Bhit            Eni            6%             Kadanwari            Eni            15.79%             Qadirpur            OGDCL            4.75%             Zamzama            BHP            9.375%             Zarghun   South            MPCL            3.75%        Â   Premier had announced the signing of share purchase agreement with Al-Haj Energy on 5 April 2017 under which it agreed to sell its subsidiary in the country holding exploration and production assets, Premier Oil Pakistan Holdings BV, to Al Haj for a cash consideration of USD 65.6 million. Al-Haj immediately paid an initial interim deposit of USD 15 million to Premier and was obliged to pay a further USD 10 million within 60 days. Closing of the transaction was subject to all necessary government and regulatory approvals and it had an economic date of 1 January 2017.   The deal was initially expected to be finalised by the end of 2017 but could not be completed due to delays in regulatory approvals from the Pakistani government. It was subsequently reported by Premier that Pakistani government approved the sale in November 2018 and the sale would be completed during Q1 2019. Premier reported in March 2019, under its 2018 annual report, that it had received USD 40 million of deposits from Al-Haj and has also collected USD 25 million in cash flows since the economic date of the transaction (1 January 2017).  Â   Background Information  Premier had announced on 12 January 2017 that it extended the offer deadline for the sale of its Pakistani exploration and production (E&P) assets till late January 2017 with a new effective date of 1 January 2017. Premier had earlier agreed terms with one bidder, but due to the bidderâs inability to put in place the necessary funding arrangements during exclusivity period, the process was reopened. The company reported on 17 November 2016 that the exclusivity period with the preferred bidder for the sale of assets had been ended and it had reopened the process to a limited group of potential buyers with an offer deadline of early January 2017. It is understood that Premier had earlier received bids from five companies which include KUFPEC, Oil and Gas Development Company Ltd (OGDCL), Ocean Pakistan Ltd (OPL), POGC (Polish) and Pakistan Petroleum Ltd (PPL). The interested companies were required to submit bids by mid-December 2015. It was reported on 9 July 2015 that Premier Oil had received an offer from one company â the companyâs name was not disclosed. It had been reported in the media that Premier is intending to take this move to further streamline its portfolio in a lower oil price environment.
Premier Oil plc completes sale of Pakistani assets to Al-Haj Energy