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Bream oil buy up
Posted 30.05.2012 10:28:37 av John Bradbury
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Britain's Premier Oil has taken another step towards building a Norwegian production business by taking more equity in the forthcoming Bream oil development for US $27.5 million.

Premier has signed to acquire 20% in PL407 and 40% in the adjacent licence PL406 – increasing its stake in PL406 to 80%  - to increase its overall equity in the Bream field area to 40% under a sale and purchase agreement with Norway's Skeie Energy AS. 

Sanction for Bream is expected in the second half of this year, and the field is due to come onstream in late 2015, Premier confirmed today - using an FPSO and operated by BG - at a rate of 14,000 b/d net to Premier.

Under the terms of the deal, Premier is paying Skeie $10 m in upfront costs and a further $17.5 m which is contingent on Bream project milestones being reached.

“We are delighted to have this opportunity to increase our interest in the Bream project, which is making good progress towards project sanction,” stated Premier chief Simon Lockett. “This transaction further demonstrates our commitment to becoming a full cycle E&P company in Norway.”
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