Premier Oil announces $65.6-million sale of Pakistan business
LONDON -- Premier has announced that it has signed a share purchase agreement with Al-Haj Energy Limited (Al-Haj) for the sale of Premier Oil Pakistan Holdings BV, which comprises Premier’s Pakistan business for a cash consideration of $65.6 million. Al-Haj have paid a deposit to Premier of $15 million and will pay a further interim deposit of $10 million within the next 60 days.
The transaction is in line with Premier’s stated strategy to dispose of non-core assets and the proceeds from the sale will be used to reduce the Company’s net debt. The economic date of the transaction is Jan. 1, 2017 with Premier retaining 2016 net cash flows. The transaction is subject to receipt of customary government and regulatory approvals and is expected to complete by year-end 2017. Premier anticipates recording a book gain on disposal estimated at $40 million.
