ASIATODAY.ID, JAKARTA – Pertamina is ready to invest $900 million in Algeria until 2048.
Indonesian Foreign Minister, Retno Marsudi revealed this after her meeting with Algerian Foreign Minister, Ahmed Attaf in Algiers, Wednesday, December 20 2023 local time.
Indonesia’s large investment in Algeria was the main theme in the discussions. Moreover, Pertamina has been investing in this North African country for a long time.
“We welcome Pertamina’s investment plan of $900 million until 2048 in the Algerian energy sector. “Pertamina is ready to expand its investment in Algeria, including in new fields such as refineries and decarbonization,” said Retno in her press statement, Thursday, December 21 2023.
Indonesia does not want economic relations with Algeria to only be limited to the oil sector, but also various joint projects in the fields of electricity, mining, renewable energy, agriculture, fisheries and other sectors.
The bilateral meeting was also marked by the signing of a memorandum of understanding (MoU) regarding energy and mining cooperation.
According to Retno, the newly signed MoU is expected to strengthen government-to-government (G2G) and business-to-business (B2B) cooperation in these sectors. However, Retno did not provide further details regarding Pertamina’s investment in Algeria.
Pertamina Internasional EP (PIEP) is part of the company’s upstream subholding and is tasked with handling overseas work areas. PIEP operates working areas in Algeria through Pertamina Algeria EP (PAEP).
Since May 2014, PAEP has fully operated the Menzel Ledjmet Nord (MLN) oil field where 65% ownership or participating interest is owned by Pertamina.
PIEP announced in June 2023 that it had secured a new hydrocarbon contract for MLN in Block 405a. Pertamina, together with Algerian state-owned oil company Sonatrach and Repsol Exploracion 405a SA, a unit of Spanish energy company Repsol, will operate the onshore oil and gas block under this contract. This operational collaboration includes the MLN field and nine other fields which include the unitization of Ourhoud and El Merk.
The work program specifically includes drilling 12 oil wells and water injection wells, connecting new development wells, and building an LPG extraction unit and a 3D WAG (water alternating gas) seismic acquisition project, as well as a solar energy production project.
The total amount of investment planned for the implementation of this development is estimated to exceed $800 million. It is estimated that the oil and gas that can be produced will reach almost 150 million barrels of oil equivalent. (AT Network)
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