Pertamina seeks to expand assets in Algeria

Indonesia?s state-owned oil and gas firm PT Pertamina and Algeria?s state-owned oil and gas company Sonatrach signed on Thursday a new MoU that would open new investment opportunities for Pertamina in the upstream sector in the latter country.

Pertamina said in a statement that the new MoU, a revision to a September 2016 MoU, was signed in Algiers by President Director Elia M. Manik, and CEO of Sonatrach Abdelmoumen Ould Kaddour.

The statement said that the new MoU opens opportunities for Pertamina to expand its existing assets or acquire new upstream assets in Algeria with production potential of up to 20,000-30,000 bpd and total reserves in excess of 100 mmbo.

The statement said that following the MoU signing, the two companies will make finalization of the agreement, and settlement of the commercial terms, followed by submitting plan of development to the Algerian upstream authority.

Elia said that the signing of the new MoU shows Pertamina?s seriousness in its efforts to search for new oil and gas reserves and get additional oil output for meeting domestic needs. He said that the new MoU does not only open opportunities for new investment in the upstream sector, but also in the downstream sector such as LPG and LNG.

Pertamina, through subsidiary Pertamina International EP, currently has three assets in Algeria including a 65 percent operating interest in MLN field, 16.9 percent interest in EMK field, and 3.73 percent interest in OHD field.

Editing by Reiner Simanjuntak