Business as usual

[michel3392@xxxxxxxxxxx]

INTERNATIONAL HERALD TRIBUNE, Saturday-Sunday, October 2-3, 1999

« Petroliam Nasional Bhd (Petronas) of Malaysia and Amerada Hess Corp. of 
the United states, will invest £136 million ($224 million) in Premier Oil 
PLC, helping the British exploration company fund work on a natural gas 
project in Asia ».
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REUTERS Friday September 24, 6:52 am Eastern Time

Petronas' Premier Oil deal part of strategy

KUALA LUMPUR, Sept 24 (Reuters) - Malaysia's state oil firm Petronas' 
proposed acquisition of a 25 percent stake in British explorer Premier Oil 
Plc ranks among its most aggressive forays abroad, but it did not surprise 
analysts. Premier Oil said on Thursday that it was in advanced talks with 
Petronas and Amerada Hess Corp over a new strategic alliance.

``The proposed transaction with Amerada Hess and Petronas, which is at an 
advanced state of discussion, will immediately strengthen our financial 
position, allowing us to realise the inherent value in our current 
business,'' Premier Oil chief executive Charles Jamieson said.

Under the proposal, Petronas and the U.S. company will subscribe for new 
shares equivalent to 25 percent each in the enlarged share capital of 
Premier Oil.

A Petronas official confirmed the company's participation in the proposed 
alliance, but declined to provide further details. ``It's not surprising as 
the move is in line with the company's strategy. Moreover, the two have been 
working together for several years now,'' said an oil analyst with a foreign 
brokerage.

Petronas chairman Azizan Zainul Abidin said in May that the company was 
considering alliances as a way to grow in the face of global consolidation 
in the petroleum industry.
International revenue accounted for 34 percent of Petronas' group turnover 
in the financial year to end-March 1999.

The Premier Oil deal, which could cost Petronas 60-70 million pounds, will 
be the Malaysian state oil firm's most aggressive since its acquisition last 
year of the remaining 70 percent stake in South Africa's Engen Ltd which it 
did not already own.
Premier Oil and Petronas are jointly developing the Yetagun gas project in 
Myanmar since 1997, comprising three exploration blocks and the construction 
of a pipeline to deliver gas from the fields to Thailand.
``They are not new to each other,'' said an oil analyst in Hong Kong.
He said the proposed alliance would also give Petronas access to Premier 
Oil's oil reserves, most of which are located in Myanmar, Indonesia and 
Pakistan.
``Financially it will be good for Premier Oil but it will be beneficial for 
Petronas as well,'' he said.
Other agreements Petronas has already made include its alliance with 
France's Total SA and Russia's Gazprom to develop an Iranian oil and gas 
field.
Petronas on Thursday declined to comment on an offer by Indian Oil Corp for 
a 26 percent stake in a proposed joint venture petrochemical plant in 
northern India.
IOC has been in talks with Petronas and Oil and Natural gas Corporation for 
a joint venture to set up an integrated paraxylene/purified terepthalic acid 
(PTA) complex near its Panipat refinery.

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AMERADA HESS IN LYBIA

FINANCIAL TIMES Thursday September 30 1999
World News / International

US OIL: Groups to check properties in Libya
By Hillary Durgin in Houston

A consortium of US oil companies has received permission from the US 
government to travel to Libya and inspect properties they relinquished 13 
years ago after the imposition of sanctions against the Tripoli government.

The permit, which was issued to Oasis, a company comprising Amerada Hess, 
Conoco and Marathon Oil, is seen by some as a small step in the possible 
easing of the sanctions and the return by US companies to doing business 
with Libya. US energy companies have complained that sanctions have cost 
them a competitive edge in the oil nations in the Middle East, including 
Iran.


"It's obviously a small step - it's not the same as being able to do 
business there again," said Richard Haass, director of foreign policy 
studies at the Brookings Institute in Washington DC. "It suggests that the 
US government might be prepared to ease sanctions parallel to Libya 
co-operating with the Pan Am 103 trial and improving its behaviour."

The United Nations Security Council lifted sanctions against Libya in April, 
a year after Col Muammer Gadaffi surrendered the two Libyans charged in 
connection with the bombing of the flight over Lockerbie, Scotland, in 1988. 
That has resulted in a flurry of interest in renewed foreign investment in 
Libya.

But the US sanctions, which were implemented in 1986 after several terrorist 
attacks involving US interests and Libyan nationals and ban trade between US 
companies and Libya, remain intact.

Conoco, which has been adamantly opposed to US sanctions policies, remained 
cautious. "This is one trip to inspect our assets that we left behind in 
1986," said Carlton Adams, a Conoco spokesman.
"We can do, will do, no new business discussions, and it certainly does not 
signify a change in US policy."

Occidental Petroleum has received a similar permit.

Conoco, based in Houston, will travel to Libya to evaluate the properties, 
which are now owned and operated by the National Oil Company of Libya, its 
former partner. At the time the companies left, the properties were 
producing 400,000 barrels of oil per day.

The Oasis partnership has had standstill agreements with the Libyan national 
oil company that outline conditions under which the companies could return 
to their properties if sanctions are lifted.

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