Pertamina Signs New Contract with Sonatrach and Repsol in Algeria
Alger - Pertamina through its Subholding Upstream subsidiary PT Pertamina Internasional EP (PIEP), which operates in Algeria under PT Pertamina Algeria EP (PAEP), has successfully enter into a new hydrocarbon contract on Menzel Lejmat Nord (MLN) in Block 405a under the Algerian Law regime 19-13 governing hydrocarbon activities. The signing took place in Sonatrach head office on Thursday, 15 June 2023.
PIEP with its partners, Sonatrach and Repsol Exploracion 405a SA continues to deliver its capabilities in operating an onshore oil and gas block. This production sharing contract is a continuation of the Head of Agreement signed among the three companies on September 28, 2022.
The association operates under the aforementioned contract, which is the MLN and other nine fields that includes the unitization of Ourhoud and El Merk.
The work program includes, in particular drilling of twelve oil wells and a water injection well, connection of new development wells, the construction of an LPG extraction unit and 3D seismic acquisition, Project WAG (Water Alternating Gas), as well as study of solar energy production projects.
The total amount of investment planned for the implementation of this development is estimated at more than USD 800 million and will enable the recovery of nearly 150 million barrels of oil equivalent.
The signature of this contract reflects the desire of the parties to pursue their partnership within the contractual scope of MLN and to strengthen their cooperation in the field of exploration and production of hydrocarbons.
The signing witnessed by CEO of PT Pertamina (Persero), Nicke Widyawati; CEO of PT Pertamina Hulu Energi, Wiko Migantoro; President Director of PT Pertamina Internasional EP, Jaffee A. Suardin; CEO of Sonatrach group, Toufik Hakkar as well as its other partners Repsol Algeria and Algerian authorities.
During the signing ceremony Nicke Widyawati expressed her appreciation, “After thorough preparation of contracts, Pertamina and its partners has finally agreed upon a new journey of oil and gas operations in Algeria. Our commitments for the long run will be a new and exciting journey, reaffirming our global footprints together with Sonatrach and Repsol as the main partners.”
“PIEP has the potential to generate a peak production in block 405a of 36,000 BOEPD and open up new development opportunities in the surrounding area over the next 25 years (and the potential for an additional 10-year contract extension). This reflects our strong forward projection in line with Pertamina's main strategy to become a world-class energy company," added Jaffee.
