Pertamina acquires ConocoPhilips Algeria

State oil and gas company PT Pertamina has signed an agreement to acquire ConocoPhilips Algeria Ltd, a subsidiary of ConocoPhilips, which controlled Block 405a.

The acquisition is expected to increase Pertamina?s oil production at 23,000 barrels per day (bpd), the company said in a press statement on Tuesday.

The Block 405a consists of three main fields, namely Menzel Lejmat North, Ourhoud, and EMK. In Menzel Lejmat North field, ConocoPhilips Algeria Ltd is the operator and has a 65 percent participating interest.

In Ourhoud field it has a participating interest of 3.7 percent and in EMK field a 16.9 percent interest.

The agreement implementation will depend on the first right of the partners of ConocoPhilips in the block and an approval by the Algerian government, but Pertamina expects to finalize the planned acquisition during the first half of next year.

During 2012, production from 405a block reached 35,000 barrels per day, of which around 23,000 barrels are the share of ConocoPhilips Algeria.

Meanwhile, Pertamina is expected to get a new oil reserve of 100 million barrels.

?This acquisition will increase our production quickly and significantly. Initially, the production increase will be 23,000 barrels per day, and later it will be about 35,000 barrels per day in 2013 after the EMK field start production in 2013. This is a milestone for Pertamina.

Editing by Benget Besalicto Tnb.