Premier Oil
Encyclopedia
Premier Oil plc is an independent British
UK oil
company with gas and oil interests in the UK
, Asia
and Africa
. It is devoted entirely to the 'upstream' sector of the industry - the exploitation of oil and gas - as opposed to the 'downstream' refining and retail sector. It is listed on the London Stock Exchange
and is a constituent of the FTSE 250 Index
.
. It was first listed on the London Stock Exchange
in 1936 as Premier (Trinidad) Oilfields For the next two decades, the Company concentrated its attention on oil production in Trinidad.
The Company acquired its first interest in the North Sea
in 1971; it expanded its operations in the UK Continental Shelf
throughout the 1970's, merging with the Ball and Collins North Sea Consortium in 1977 to gain significant interests in the North Sea
as well as properties in Sudan
and West Africa
.
In 1984, the Company took a 12½% stake in the onshore oilfield at Wytch Farm
in Dorset
. This acquisition transformed the company's reserve base and cash flow and, even today, continues to make an important contribution to Premier's revenues, thanks to large scale expansions which have only become technically feasible with modern technology.
In the late 1980s and early 1990s, Premier enjoyed a series of exploration successes, notably the discovery of the Qadirpur gas field in Pakistan
in 1990, the Fife and Angus fields in the UK Continental Shelf
and the Yetagun gas field in Myanmar
in 1992, as well as the offshore extension to Wytch Farm
. The Yetagun transaction involved Premier entering into a deal directly with the Myanmar
government.
In 1995, Premier acquired Pict Petroleum. As a consequence, Amerada Hess
which had a substantial stake in Pict came to hold 25% of Premier's enlarged equity. From this point, Premier was participating in numerous North Sea oil
and gas fields, including Fife, Fergus, Galahad and Scott.
In 1996 the Company diverted its attention to the Far east
acquiring Sumatra Gulf Oil Limited, which had interests in Indonesia
, and in 1997 went further buying Texaco
's interests in Myanmar
.
In 1998, Premier and Shell
brought together their exploration and production interests in Pakistan to form a joint venture company, PSP (Premier & Shell Pakistan). In May 2001, Premier announced an asset swap
with Shell which dismantled the partnership and, in September 2001, the formation of a new joint venture with Kufpec called Premier Kufpec Pakistan (PKP). Premier and Kufpec unwound the PKP joint venture in July 2007.
Petronas
, the Malaysian oil company, decided to invest significant cash in the Company in 1999 buying a 25% stake.
A restructuring took place in 2002 which saw Petronas
and Amerada Hess
each give up their 25% holdings in Premier Oil in return for taking various Premier assets. Petronas
received the Group's interest in Myanmar
as well as stakes in Indonesia
n interests. Amerada Hess
received a 23% stake in a key Natuna oil field in Indonesia
.
In 2004 the Company acquired a 75% stake in an oil interest in Vietnam
.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
UK oil
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....
company with gas and oil interests in the UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
and Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
. It is devoted entirely to the 'upstream' sector of the industry - the exploitation of oil and gas - as opposed to the 'downstream' refining and retail sector. It is listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and is a constituent of the FTSE 250 Index
FTSE 250 Index
The FTSE 250 Index is a capitalisation-weighted index consisting of the 101st to the 350th largest companies on the London Stock Exchange. Promotions to and demotions from the index take place quarterly in March, June, September and December...
.
History
The Company started trading in 1934 as the Caribbean Oil Company with the intention of pursuing oil and gas exploration and production activities in TrinidadTrinidad
Trinidad is the larger and more populous of the two major islands and numerous landforms which make up the island nation of Trinidad and Tobago. It is the southernmost island in the Caribbean and lies just off the northeastern coast of Venezuela. With an area of it is also the fifth largest in...
. It was first listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
in 1936 as Premier (Trinidad) Oilfields For the next two decades, the Company concentrated its attention on oil production in Trinidad.
The Company acquired its first interest in the North Sea
North Sea
In the southwest, beyond the Straits of Dover, the North Sea becomes the English Channel connecting to the Atlantic Ocean. In the east, it connects to the Baltic Sea via the Skagerrak and Kattegat, narrow straits that separate Denmark from Norway and Sweden respectively...
in 1971; it expanded its operations in the UK Continental Shelf
UK Continental Shelf
The UK Continental Shelf is the region of waters surrounding the United Kingdom, in which the country claims mineral rights. This principally refers to the North Sea, where there are large resources of hydrocarbons. The North Sea is also bordered by Norway, Denmark, Germany and The Netherlands...
throughout the 1970's, merging with the Ball and Collins North Sea Consortium in 1977 to gain significant interests in the North Sea
North Sea
In the southwest, beyond the Straits of Dover, the North Sea becomes the English Channel connecting to the Atlantic Ocean. In the east, it connects to the Baltic Sea via the Skagerrak and Kattegat, narrow straits that separate Denmark from Norway and Sweden respectively...
as well as properties in Sudan
Sudan
Sudan , officially the Republic of the Sudan , is a country in North Africa, sometimes considered part of the Middle East politically. It is bordered by Egypt to the north, the Red Sea to the northeast, Eritrea and Ethiopia to the east, South Sudan to the south, the Central African Republic to the...
and West Africa
West Africa
West Africa or Western Africa is the westernmost region of the African continent. Geopolitically, the UN definition of Western Africa includes the following 16 countries and an area of approximately 5 million square km:-Flags of West Africa:...
.
In 1984, the Company took a 12½% stake in the onshore oilfield at Wytch Farm
Wytch Farm
Wytch Farm is an oil field and processing facility in the Purbeck district of Dorset, England. It is the largest onshore oil field in western Europe. The facility, operated by BP, is hidden in a coniferous forest on Wytch Heath on the southern shore of Poole Harbour, two miles north of Corfe Castle...
in Dorset
Dorset
Dorset , is a county in South West England on the English Channel coast. The county town is Dorchester which is situated in the south. The Hampshire towns of Bournemouth and Christchurch joined the county with the reorganisation of local government in 1974...
. This acquisition transformed the company's reserve base and cash flow and, even today, continues to make an important contribution to Premier's revenues, thanks to large scale expansions which have only become technically feasible with modern technology.
In the late 1980s and early 1990s, Premier enjoyed a series of exploration successes, notably the discovery of the Qadirpur gas field in Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
in 1990, the Fife and Angus fields in the UK Continental Shelf
UK Continental Shelf
The UK Continental Shelf is the region of waters surrounding the United Kingdom, in which the country claims mineral rights. This principally refers to the North Sea, where there are large resources of hydrocarbons. The North Sea is also bordered by Norway, Denmark, Germany and The Netherlands...
and the Yetagun gas field in Myanmar
Myanmar
Burma , officially the Republic of the Union of Myanmar , is a country in Southeast Asia. Burma is bordered by China on the northeast, Laos on the east, Thailand on the southeast, Bangladesh on the west, India on the northwest, the Bay of Bengal to the southwest, and the Andaman Sea on the south....
in 1992, as well as the offshore extension to Wytch Farm
Wytch Farm
Wytch Farm is an oil field and processing facility in the Purbeck district of Dorset, England. It is the largest onshore oil field in western Europe. The facility, operated by BP, is hidden in a coniferous forest on Wytch Heath on the southern shore of Poole Harbour, two miles north of Corfe Castle...
. The Yetagun transaction involved Premier entering into a deal directly with the Myanmar
Myanmar
Burma , officially the Republic of the Union of Myanmar , is a country in Southeast Asia. Burma is bordered by China on the northeast, Laos on the east, Thailand on the southeast, Bangladesh on the west, India on the northwest, the Bay of Bengal to the southwest, and the Andaman Sea on the south....
government.
In 1995, Premier acquired Pict Petroleum. As a consequence, Amerada Hess
Hess Corporation
The Hess Corporation is an integrated oil company based in New York City. The company explores, produces, transports, and refines crude oil and natural gas. Vertically completing the logistical chain, about 1,360 Hess branded filling stations market gasoline to consumers in 16 states along the...
which had a substantial stake in Pict came to hold 25% of Premier's enlarged equity. From this point, Premier was participating in numerous North Sea oil
North Sea oil
North Sea oil is a mixture of hydrocarbons, comprising liquid oil and natural gas, produced from oil reservoirs beneath the North Sea.In the oil industry, the term "North Sea" often includes areas such as the Norwegian Sea and the area known as "West of Shetland", "the Atlantic Frontier" or "the...
and gas fields, including Fife, Fergus, Galahad and Scott.
In 1996 the Company diverted its attention to the Far east
Far East
The Far East is an English term mostly describing East Asia and Southeast Asia, with South Asia sometimes also included for economic and cultural reasons.The term came into use in European geopolitical discourse in the 19th century,...
acquiring Sumatra Gulf Oil Limited, which had interests in Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
, and in 1997 went further buying Texaco
Texaco
Texaco is the name of an American oil retail brand. Its flagship product is its fuel "Texaco with Techron". It also owns the Havoline motor oil brand....
's interests in Myanmar
Myanmar
Burma , officially the Republic of the Union of Myanmar , is a country in Southeast Asia. Burma is bordered by China on the northeast, Laos on the east, Thailand on the southeast, Bangladesh on the west, India on the northwest, the Bay of Bengal to the southwest, and the Andaman Sea on the south....
.
In 1998, Premier and Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
brought together their exploration and production interests in Pakistan to form a joint venture company, PSP (Premier & Shell Pakistan). In May 2001, Premier announced an asset swap
Asset swap
An asset swap is an exchange of tangible assets for intangible assets or vice versa. Since it is a swap of assets, the procedure takes place on the active side of the balance sheet and has no impact on the latter in regards to volume...
with Shell which dismantled the partnership and, in September 2001, the formation of a new joint venture with Kufpec called Premier Kufpec Pakistan (PKP). Premier and Kufpec unwound the PKP joint venture in July 2007.
Petronas
Petronas
PETRONAS, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company that was founded on August 17, 1974. Wholly owned by the Government of Malaysia, the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and...
, the Malaysian oil company, decided to invest significant cash in the Company in 1999 buying a 25% stake.
A restructuring took place in 2002 which saw Petronas
Petronas
PETRONAS, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company that was founded on August 17, 1974. Wholly owned by the Government of Malaysia, the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and...
and Amerada Hess
Hess Corporation
The Hess Corporation is an integrated oil company based in New York City. The company explores, produces, transports, and refines crude oil and natural gas. Vertically completing the logistical chain, about 1,360 Hess branded filling stations market gasoline to consumers in 16 states along the...
each give up their 25% holdings in Premier Oil in return for taking various Premier assets. Petronas
Petronas
PETRONAS, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company that was founded on August 17, 1974. Wholly owned by the Government of Malaysia, the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and...
received the Group's interest in Myanmar
Myanmar
Burma , officially the Republic of the Union of Myanmar , is a country in Southeast Asia. Burma is bordered by China on the northeast, Laos on the east, Thailand on the southeast, Bangladesh on the west, India on the northwest, the Bay of Bengal to the southwest, and the Andaman Sea on the south....
as well as stakes in Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
n interests. Amerada Hess
Hess Corporation
The Hess Corporation is an integrated oil company based in New York City. The company explores, produces, transports, and refines crude oil and natural gas. Vertically completing the logistical chain, about 1,360 Hess branded filling stations market gasoline to consumers in 16 states along the...
received a 23% stake in a key Natuna oil field in Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
.
In 2004 the Company acquired a 75% stake in an oil interest in Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
.
Operations
The Company operates in the following countries:- United KingdomUnited KingdomThe United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
- PakistanPakistanPakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
- IndonesiaIndonesiaIndonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
- VietnamVietnamVietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
- IndiaIndiaIndia , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
- PhilippinesPhilippinesThe Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
- NorwayNorwayNorway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
- CongoRepublic of the CongoThe Republic of the Congo , sometimes known locally as Congo-Brazzaville, is a state in Central Africa. It is bordered by Gabon, Cameroon, the Central African Republic, the Democratic Republic of the Congo , the Angolan exclave province of Cabinda, and the Gulf of Guinea.The region was dominated by...
- Saharawi Arab Democratic Republic
- EgyptEgyptEgypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...