Wow! Pertamina Will Invest IDR 13.9 Trillion in Algeria News – 5 hours ago

Jakarta, CNBC Indonesia – PT Pertamina (Persero) will invest US$ 900 million or around Rp. 13.9 trillion in Algeria until 2048.

This was stated by Indonesian Minister of Foreign Affairs Retno Marsudi after holding a bilateral meeting with the Algerian Foreign Minister and a courtesy visit with the President of Algeria.

During the meeting, Indonesia's investment plans in the energy sector were one of the topics discussed. According to Retno, Indonesia and Algeria are close partners for energy cooperation.

At least, Pertamina has become a development partner for the Algerian Oil and Gas sector. This commitment is also realized by the realization of sustainable investment.

“Pertamina plans to re-invest US$ 900 million until 2048 in the Algerian energy sector, including in the fields of refinery and decarbonization,” said Retno in a written statement, quoted Monday (25/12/2023).

The results of this meeting were also marked by the signing of a memorandum of understanding (MoU) regarding energy cooperation between the two countries. Retno hopes that this MoU can strengthen cooperation between the two governments and promote it business to business (B to B) in the energy sector.

For information, PT Pertamina (Persero) signed an Amendment to the Memorandum of Understanding (Amendment of Memorandum of Understanding/MoU) with Sonatrach, an Algerian oil and gas company.

Apart from strengthening cooperation between the two companies in the field of oil and gas exploration and production, the MOU also covers decarbonization efforts including the potential for cooperation in developing CCS (Carbon Capture & Storage)/CCUS (Carbon Capture Utilization & Storage), as well as the potential for using environmentally friendly energy such as Sustainable Aviation Fuel (SAF).

The signing was carried out by the Director of Strategy, Portfolio and Business Development (SPPU) of PT Pertamina (Persero) A. Salyadi Saputra and the Director of Business Development & Marketing Sonatrach Ferhat Ounoughi, witnessed by the Main Director of PT Pertamina Hulu Energi (PHE) and the Main Director of PT Pertamina Internasional EP (PIEP), at Sonatrach Head Office, Wednesday 20 December 2023 local time.

Director of SPPU PT Pertamina (Persero) A. Salyadi Saputra explained that this MoU was an amendment to the previous MoU which was signed in 2021. In this amendment, the cooperation between the two parties was extended, namely until 2025.

“The amendment to the MOU between Pertamina and Sonatrach shows Pertamina's seriousness in working on overseas fields and business expansion on the world stage,” he said.

The signing of this MOU amendment will further strengthen the relationship between the two parties after previously signing a new contract for management of the 405A oil and gas block on June 15 2023.

“With this momentum, it is hoped that Pertamina can obtain more opportunities for cooperation in managing oil and gas blocks and continue the collaboration and synergy between Pertamina and Sonatrach to seek integrated collaboration from Upstream to Downstream as well as new and renewable energy,” added Salyadi.

Pertamina is interested in the possibility of a partnership through an exploration and exploitation block with Sonatrach and is looking forward to this opportunity. Not only in Block 405A but also in other surrounding areas that have oil and gas potential.

Meanwhile, Pertamina's Vice President for Corporate Communication, Fadjar Djoko Santoso, added that Pertamina's upstream oil and gas business abroad is carried out by PIEP which is under Pertamina's Upstream Subholding.

PIEP manages international assets, with the main focus on acquiring and managing oil and gas fields and looking for oil and gas sources in various countries. The aim is to fulfill domestic oil and gas needs and support national energy security.

To date, PIEP has foreign oil and gas field assets spread across 12 countries, namely Algeria, Malaysia, Iraq, France, Italy, Namibia, Tanzania, Gabon, Nigeria, Colombia, Angola, Venezuela.

“Pertamina, through PIEP, wants to continue to increase oil and gas investment in Algeria, because Algeria is considered a priority for growth because we already have a footprint. This collaboration is also an opportunity to unlock Algerian business value, including synergies with other future opportunities to continue to develop,” said Fadjar .

In Algeria, PIEP together with its partners, Sonatrach and Repsol Exploracion 405A SA manage the Menzel Lejmat Nord (MLN) block in Block 405A and nine other fields that include the Ourhoud and El Merk unitizations. Block 405A has the potential to produce peak production of 36,000 barrels of oil equivalent per day (BOEPD).

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