JAKARTA (TheInsiderStories) – PT Pertamina, the largest energy company in Indonesia and Sonatrach signed Memorandum of Understanding (MoU) on oil and gas block in Algeria. The two companies will cooperate to produce oil and gas a number of blocks in Algeria.
The MoU signing was done by Pertamina’s President Director Elia Massa Manik and Sonatrach CEO Abdelmoumen Ould Kaddour in Algiers, Algeria, on Thursday (21/12).
This new agreement, Manik said, will give an opportunity for Pertamina to explore new oil and gas potential in Algeria, includes the development of existing assets as well as the development of new assets with potential production of up to 30,000 barrels per day with a total reserve of more than 100 million barrels of oil (MMBO).
As soon as this MoU is signed, Pertamina and Sonatrach will finalize the agreement and settlement commercial terms to subsequently submit Plan of Development to oil and gas authorities in Algeria.
Manik added that this MoU will also open an opportunity for both companies to explore new businesses–upstream and downstream–including working on the potential of LNG and LPG.
“This MoU is a testament to the confidence of our partners, where Pertamina is considered serious work on the field abroad, especially three fields in Algeria. This effort also shows Pertamina’s seriousness in expanding upstream business operations overseas to increase national oil and gas reserves and production,” said Manik.
Currently, Pertamina has three fields in Algeria through its subsidiary PT Pertamina International EP (PIEP), by becoming the operator with the right to manage 65 per cent in MLN Field. Pertamina also has the management rights in the EMK field with interest of 16.9 per cent and in the OHD field 3.73 per cent.
In August, Pertamina completed the acquisition of 24.5 per cent stake in French oil and gas company Maurel et Prom. Pertamina, currently, is exploring to operate and get into Maurel et Prom’s block management.
Maurel has control over several blocks that are already producing and exploring. The blocks are located in a number of countries, including Canada, France, Italy, Myanmar, Namibia, Colombia, and Gabon.
In November 2017, Pertamina through its subsidiary PT Kilang Pertamina Internasional and Russia’s Oil & Gas company, Rosneft Oil Company through its affiliate Petrol Complex Pte. Ltd., have signed the Deed of Establishment of the joint venture company named PT Pertamina Rosneft Pengolahan dan Petrokimia (PRPP), that will develop and operate the New Grass Root Refinery and Petrochemical Complex in Tuban, East Java.
Pertamina and Rosneft have agreed on the composition of the Joint Venture Company, in which Pertamina and Rosneft own 55 percent and 45 percent respectively of the total share. Refinery Tuban is planned to have 300,000 barrels of crude processing capacity.
Written by Linda Silaen, Email: email@example.com