RNS Number:8430N
Premier Oil PLC
23 July 2003


                                 PREMIER OIL PLC
                                  ("Premier")

       Premier Joins Shell in Exploration of Offshore Indus, Pakistan

Premier is pleased to announce the signing of an agreement to acquire 25% of
Shell Development and Offshore Pakistan BV's (Shell) 95% working interest in
Block 2365-1 Offshore Indus E, a deepwater exploration licence with both oil and
gas potential in the Indus basin, approximately 150 kilometres south of Karachi.
Kufpec Pakistan BV (Kufpec) will also acquire an interest on the same terms.

The new partnership, finalisation of which is subject to regulatory approvals,
will comprise Shell (47.50%), Premier (23.75%), Kufpec (23.75%), and Government
Holdings (Private) Ltd (GHPL 5%).  As a result of this agreement, Premier and
Kufpec will each contribute approximately $4.5 million towards exploration costs
in the current licence period including a 3D seismic survey.

The area currently has widely spaced 2D seismic data coverage. A 3D seismic
survey will significantly enhance the subsurface imaging of this Tertiary delta.
It is hoped that this will increase the chance of success of further exploration
on this block which has the potential to rank with other prolific Tertiary
deltas.

Charles Jamieson, Chief Executive of Premier, said:

"We are delighted to be joining Shell to explore this exciting area. This deal
will be an important addition to our growing stock of new exploration ventures."

                                                                    23 July 2003


ENQUIRIES:

Premier Oil plc                                      Tel: 020 7730 1111
Charles Jamieson
John van der Welle

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 block 2365-1 will be:

Shell Development and Offshore Pakistan (Operator)                      47.50%
Premier Oil Pakistan Offshore BV                                        23.75%
Kufpec Pakistan BV                                                      23.75%
Government Holdings (Private) Ltd                                       5.00%


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