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Premier Oil to Sell its Pakistan Operations

Premier Oil is all set to sell its operations in Pakistan to Al-Haj Energy Limited Group for a cash concern of $65.6 Million. Shares in Premier Oil have risen nearly five percent after it announced it is selling its operations in Pakistan for $65.6m (£52.6m).

Al-Haj has paid a pre-payment of $15m and will pay up a further interim deposit of $10m within the coming 60 days. Al-Haj Group, the buyer of Premier oil is Pakistani corporation with a deep awareness of logistics, fuel, automobiles and textiles.

Premier said the deal, which is likely to complete by the end of this year, is in line with its stated approach to arrange of non-core assets, with the profits from the sale to be used to reduce net debt. Subject to government and regulatory approvals, the deal is expected to close by the end of 2017.

The oil and gas explorer has net debt of £2.2bn, compared with Ebitda in 2016 of £475m. According to Premier Oil, the economic date of the agreement was January 1 of this year and that it would continue to hold 2016 cash flows only. The company believes in recording a book gain on clearance estimated at $40m.

"We are pleased to have reached an agreement to sell our Pakistan business. While now non-core for Premier, our Pakistan business has consistently outperformed our expectations over the years and this is a testament to the hard work and skill of our team in Islamabad,” Chief Executive Officer of Premier Oil said.

Nazish Islam - a media graduate with an undying love for chai, books, traveling, series shows, sports, hijab, and of course writing.

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Premier Oil to Sell its Pakistan Operations

Premier Oil is all set to sell its operations in Pakistan to Al-Haj Energy Limited Group for a cash concern of $65.6 Million. Shares in Premier Oil have risen nearly five percent after it announced it...