Premier Oil has completed a farm down of interest in the Tuna production sharing contract (PSC), offshore Indonesia to Russia's Zarubezhneft.
The UK-based company that will soon merge with rival Chrysaor, said Tuesday the transaction completion came after receipt of Indonesian government approval.
Under the farm down agreement, terms of which were agreed in December 2019, Zarubezhneft will carry Premier for its share of a two-well campaign to appraise the Tuna discoveries, scheduled to begin in the second quarter of this year.
Also, Premier and Zarubezhneft have secured Indonesian government approval for a one-year extension to the exploration period of the Tuna PSC to March 2022.
Premier remains the operator of the Tuna PSC, with the company and Zarubezhneft each having a 50 percent interest in the license.