Premier Oil has been awarded an exploration license in Indonesia’s North Sumatra basin.
The firm, which is headquartered in London, has been awarded the Andaman 2 License, along with Mubadala Petroleum and Kris Energy.
Premier says the license, which is underexplored but proven, has the potential for significant gas volumes.
It added that it has identified numerous prospects showing direct indicators of hydrocarbons on the existing 2D seismic data.
The joint venture is 40% owned by Premier who is operator, with Mudabala controlling 30% and the remaining 30% stake being held by Kris Energy.
Premier says the forward plan is to acquire 3D seismic data in the initial three-year term.
Chief executive officer Tony Durrant said: “This award is in line with Premier’s strategy of targeting low commitment high impact exploration in proven hydrocarbon provinces and has the potential to deliver significant organic growth opportunities for our existing Indonesian business in the longer term.”