British oil company Premier Oil plc, a FTSE 250 company, is set to enter the UAE following the execution in January of shareholder agreements with Abu Dhabi-based Emirates International Investment Company, EIIC, for the creation of two new joint venture companies to build a portfolio of oil and gas projects across the East and North Africa region. The new companies will be headquartered in Abu Dhabi.

The firstjointventure,tobeknownas PREMCO, will be owned 49% by Premier and 51% by EIIC and will hold all joint venture assets which are acquired in the UAE. In the event of a change of control of Premier Oil plc, EIIC will have a pre-emptive right to purchase Premier’s 49% of this joint venture at fair market value.

The second joint venture, to be known as PREMBV, will be owned 50% by Premier and 50% by EIIC, and will hold all joint venture assets which are acquired in the Middle East and North Africa region (excluding the UAE).

Premier Oil is a long-established, UK-listed exploration and production company. Founded in 1934, the company has a long history of international activity stretching from its formative days in Trinidad to its most recent exploration successes offshore Vietnam.

Premier is a company that offers the same depth and breadth of technical skills in oilfield development and management as you would normally expect to find in the giant oil companies. However the company prides itself in being able to make decisions quickly, and to keep costs to a minimum – important attributes in today’s congested markets.

Today, Premier’s international portfolio is organised into four geographically-focused Business Units.

The North Sea is Premier’s longest-established area of operation. Premier’s UK production from onshore and offshore oilfields is supplemented by a fast growing Norwegian business which is focussed on field re-development and new venture “wildcat” exploration drilling. West Africa is an area where Premier looks for high impact “wildcat” exploration opportunities, with forthcoming wells planned in Congo.

Asia is known as Premier’s traditional heartland and is the area of the world where it has achieved most success in recent years, being one of the leading independents in the region. Premier and its partners supply a third of the gas used in Singapore for electricity generation from a fieldlocated650kmaway in Indonesian waters. This is Premier’s flagshipoperatedproject,Anoa. Premier is also involved in fielddevelopments in North Sumatra, and in Vietnam, where Premier is developing the Chim Sao field it discovered in 2006.

Premier’s fourth Business, Middle East & Pakistan, was until recently based around a growing gas business in Pakistan, where Premier holds interests in world-scale gas fieldssuchasQadirpur,Zamzama and Bhit. These fieldshaveperformed better and better over time and production from the fieldsmirrorsthesteady but continual increase in Pakistan’s domestic gas demand.

Simon Lockett, Premier’s CEO, joined the company from Shell in 1995 and was appointed Chief Executive Officerin2005.HeexplainsthatPremier has much wider ambitions for its Middle East & Pakistan Business, which has been the driver for the setting up of the joint venture with EIIC:

“Premier’s business model has at its core the quest for world-class technical excellence in everything we do; coupled with this approach we aim to build and maintain the best possible relationships with all of our business partners.

Our Business Development Director, Robin Allan, and his team have worked with EIIC’s team to create this new company set-up and we intend putting the full weight of Premier’s technical resources behind these ambitious expansion plans.

”Robin Allan, who joined Premier in 1986 and became the Business Development Director in 2003, continues the story: “Premier and EIIC complement each other perfectly. Premier brings a long history of top-flight operating experience, especially in operations in countries such as Indonesia and Pakistan. EIIC is a top-tier company in Abu Dhabi and has an incredibly powerful network of relationships right across the Middle East & North Africa. Our skill-sets are truly complementary and we aim to build a Business based on our combined strengths.”

Emirates International Investment Company (EIIC) is a leading Abu Dhabi-based private holding company. Founded in 1999, EIIC focuses on investments in various growth sectors across the Gulf countries, the Middle East, North Africa and Europe. Sectors of interest include industries, real estate and energy.

Jamie Bassett is a Senior Corporate Planner for Premier Oil plc.