Premier Oil, BW Offshore sign LoU for FPSO Nexus No.1

Premier Oil Vietnam Offshore and BW Offshore Singapore have signed a letter of understanding for the charter of the FPSO Nexus No.1.

Offshore staff

SINGAPORE -- Premier Oil Vietnam Offshore and BW Offshore Singapore have signed a letter of understanding for the charter of the FPSO Nexus No.1. Nexus has given its authorization to BW Offshore Singapore Pte Ltd. to execute the LoU with the aim of reaching a firm charter agreement with Premier Oil.

However, the charter agreement to be entered into with Premier Oil is conditional upon a substantial financial restructuring of Nexus and Premier's own internal Vietnamese and partner approvals, says Nexus.

As previously announced, Nexus is preparing for a potential lay-up period forNexus No.1 after delivery from the yard at the end of June 2009 as a consequence of the company not yet being able to secure a charter contract for the FPSO.

04/24/2009

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