Pertamina buys ConocoPhilips’ share in Algerian block

oil algeria-cfiesler flickrIndonesia’s Pertamina has acquired ConocoPhillips’ Block 405a onshore Algeria for US$1.75bn, making it its first major acquisition overseas

The company now holds a 65 per cent stake in Block 405a, which contains three main oilfields — Menzel Lejmat North (MLN), Ourhoud and EMK.

According to the state-owned company, Pertamina has been eyeing overseas assets in recent years to secure energy supply to meet the country’s growing energy needs.

Pertamina announced plans to buy the Algerian assets last year. The company had then said that the acquisition would boost its crude oil production by 23,000 bpd from the current 196,000 bpd.

Pertamina is now targeting the production of 244,000 bpd by the end of 2013, it added.

Karen Agustiawan, CEO of Pertamina, said, “This major acquisition provides Pertamina with significant volumes of high quality crude and represents a key milestone in our international upstream business expansion efforts.”

Agustiawan added that the company will work closely with its partners and the Algerian authorities to fully develop the oil production potential of the block.

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