Joint Venture

RNS Number:8789T
Premier Oil PLC
06 January 2004


                                PREMIER OIL PLC
                                  ("Premier")

                  Joint Venture Declares Chinguetti Commercial


Premier is pleased to report that the joint venturers in the Chinguetti oil
field off the coast of Mauritania in West Africa have declared the discovery
commercial and will shortly submit a plan for developing the field to the
Mauritanian Government for approval.


The joint venture's decision on commerciality is in line with the project
schedule and is a key milestone towards the venture making a final investment
decision and awarding major contracts by mid-2004. First oil is planned for late
2005-early 2006.



Through its agreement with Fusion Oil & Gas plc ("Fusion") announced on 28 May
2003, Premier will acquire Fusion Mauritania A Ltd, which owns an interest in
Mauritania Production Sharing Contract A ("PSC A"), and Fusion Mauritania B Ltd,
which owns an interest in Mauritania Production Sharing Contract B ("PSC B").
Completion of this agreement will take place separately for each PSC and will
occur on Mauritanian government approval of a field development plan for a field
in each PSC.



As announced on 17 December 2003, Fusion Mauritania A and Fusion Mauritania B
have agreed to increase their interests in Mauritania PSC A and PSC B. After
completion of this transaction and the transaction with Fusion, Premier's share
in PSC B, which contains the Chinguetti and Tiof discoveries, will increase to
9.23%. Premier's share in PSC A, which contains the Banda discovery, will
increase to 4.62%.





                                                                  6 January 2004




ENQUIRIES:

Premier Oil plc                                      Tel: [phone]

Charles Jamieson

John van der Welle


College Hill                                         Tel: [phone]
James Henderson



Background For Editors:


Premier Oil plc is a leading independent oil and gas company with producing
interests in the UK, Indonesia, and Pakistan. Exploration and appraisal is
ongoing in the UK, Indonesia, West Africa (Mauritania, Guinea Bissau and Gabon)
and South Asia (Pakistan and India).

As announced on 17 December 2003, Fusion Mauritania A and Fusion Mauritania B
have agreed to increase their interests in Mauritania PSC A & PSC B. The current
partners and interests before and after this sale are:


Company                                         PSC A                   PSC B
                                        Pre-sale    Post-sale   Pre-sale    Post-sale

                                            %           %           %           %
Woodside Mauritania                           35.0       53.85        35.0       53.85
Agip Mauritania BV                            35.0          -         35.0          -
Hardman Petroleum                             24.3       37.38        21.6       33.23
Fusion Mauritania A Ltd*                       3.0        4.62          -           -
Fusion Mauritania B Ltd*                        -           -          6.0        9.23
ROC Oil (Mauritania)                           2.7        4.15         2.4        3.69





The Government of Mauritania has the right to back in to 12% equity in
developments producing up to 75,000 barrels of oil per day.



*Premier will take up its share of PSC A and PSC B from Fusion Oil & Gas on
completion of the transaction announced on 28 May 2003.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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