Pertamina, Sonatrach close to sign crude supply deal

Indonesia state oil and gas company Pertamina and Algerian national oil company Sonatrach is expected to close long-term Sahara Blend crude supply deal from Algeria to Indonesia soon and the deal may be formally signed by President megawati on her visit to Algeria.

"We have basically agreed on the terms and conditions. A Pertamina official will go to Algeria next week to finalize the deal. We are hopeful that President Megawati on her visit to Algeria will be able to sign the deal," said Pertamina's president Baihaki Hakim on a sideline of Production Sharing Contract (PSC) handing over ceremony in Jakarta Tuesday.

"The deal is expected to be formally signed in September, but it would depend on President's schedule to visit Algeria," said Baihaki.

Baihaki said the deal would initially be signed for one year and could be extended if needed. The deal would call for Sonatrach to supply at least 1 million barrels of Saharan Blend per month to feed Balikpapan refinery.

Pertamina had purchased 1 million barrels of Saharan Blend from Sonatrach for September shipment, said Baihaki. (alex/godang).