ZN Asia Becomes Premier Oil Partner to Work on Tuna Block

Query regarding Premier Oil’s partner to work on the Tuna Block has been answered. Zarubezhneft, through its subsidiary ZN Asia Ltd, officially holds 50 percent participation rights for the working area located in Natuna Waters. Dwi Soetjipto, Head of the Upstream Oil and Gas Special Regulatory Task Force (SKK Migas), said Zarubezhneft is a Russian state-owned oil and gas company. Currently, the Tuna Block is in the finalization stage of exploration. In the next stage, Premier Oil will propose a plan of development (PoD).

To increase the Tuna Block development's economic value, Dwi said the Governments of Indonesia and Vietnam had signed a Memorandum of Understanding (MoU) on the cooperation of Premier Oil and Vietnam Oil and Gas Group given that the Tuna Block is closer to a production facility in Vietnam. Meanwhile, the closest production facility in Indonesian waters is in the Natuna Sea Block A Working Area, which is 385 km away. "So the development of the Tuna Block could become uneconomical using that [Indonesian] facility," he said in a written statement on Thursday (10/22). As a result, Tuna Block gas will flow to Vietnam.

Dwi added the presence of Premier Oil's new partner from Russia is also a sign that Indonesia's investment climate is still attractive. "Although, globally, there has been a decrease in investment by an average of 30 percent due to the COVID-19 outbreak, which has caused oil and gas consumption to fall. We should be grateful, investment in Indonesia is relatively better with the decline in investment in Indonesia estimated at only around 18 percent," Dwi said.