RNS Number:6695N
Premier Oil PLC
17 July 2003





                                PREMIER OIL PLC
                                  ("Premier")

         Premier Announces Completion of Zamzama Phase I Development



Premier is pleased to announce the completion of both the Zamzama Phase I
Development in Sindh Province in Pakistan, and the first contractual commercial
gas deliveries to customers from the new facilities.  Phase I was completed
nearly four months ahead of schedule and under the original US$100 million
budget.



Approved in March 2002, Phase I will triple the current gas processing capacity
enabling the supply of up to 320 million standard cubic feet per day (MMcf/d) of
gas  to Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines
Limited (SNGPL).



Gas Sales and Purchase agreements with SSGCL and SNGPL cover the supply of gas
up to 320MMcf/d of gas (4,300 barrels of oil equivalent per day to Premier) over
the expected field life of 20 years.  The core area of the Zamzama field has
estimated proven and probable reserves of 1.7 trillion cubic feet (Tcf) of which
Premier's share is around 320 billion cubic feet (Bcf). There is significant
additional reserves potential outside the core area.



Three new development wells (Zamzama-3, -4, and -5) were drilled during this
phase of development and are tied into two new processing trains with a
nameplate capacity of 140MMcf/d each.  A fourth well (Zamzama North) designed to
further appraise the field is also nearing completion.  First production from
the Zamzama field commenced in March 2001 via an Extended Well Test fed by two
wells (Zamzama-1 and -2), and has supplied on average 100 MMcf/d of gas to Sui
Southern Gas Company under a 21 month contract.





Charles Jamieson, Chief Executive of Premier, said:



"We are delighted that this development has been completed ahead of schedule and
under budget.



The startup of this field completes the development of all of Premier's
commercial reserves in Pakistan. We are planning  further exploration activity
in the next 12 months."





                                                                    17 July 2003




ENQUIRIES:

Premier Oil plc                                      Tel: 020 7730 1111
John van der Welle
Mark Akers


College Hill                                         Tel: 020 7457 2020
Justine Hibbert
Phil Wilson-Brown






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).

On 16 September 2002 Premier announced a major restructuring involving the
transfer of interests in Myanmar and Indonesia to its major shareholders Amerada
Hess and Petronas in return for the cancellation of their combined 50 per cent.
shareholding in Premier, an injection of cash and repayment of Myanmar project
debt. The restructuring leaves Premier as a fully independent oil company in a
good position to follow its strategy of value creation and early realisation
through oil and gas exploration and commercial deal-making.

The partners and interests in the Zamzama field are:


BHP Petroleum (Pakistan) Pty Ltd                                   38.50%
(Operator)

Government Holdings (Private) Ltd                                  25.00%

PKP Exploration Ltd*                                               18.75%

ENI Pakistan (M) Ltd  (formerly Lasmo (MP)                         17.75%
Limited)



* PKP Exploration Ltd is 100% owned by Premier-KUFPEC Pakistan B.V. Premier and
KUFPEC each hold 50% of Premier-KUFPEC Pakistan B.V.






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