Pertamina - Sonatrach Strengthen Upstream to Downstream Oil and Gas Cooperation

Source Company Press Release
Company Pertamina, Repsol, Sonatrach
Tags Country: Algeria, Indonesia, Segment: CCS/CCUS, Sustainability: ESG/CSR, Upstream: Upstream News
Date December 21, 2023

PT Pertamina (Persero) has signed an Amendment of the Memorandum of Understanding (MOU) with  Sonatrach, an Algerian oil and gas company. Besides reinforcing the collaboration between the two companies in oil and gas exploration and production, the MOU also encompasses decarbonization efforts, including the potential collaboration in Carbon Capture & Storage (CCS)/Carbon Capture Utilization & Storage (CCUS), as well as exploring the potential utilization of environmentally friendly energy sources like Sustainable Aviation Fuel (SAF).

The signing was executed by the Director of Strategy, Portfolio, and Business Development (SPPU) of PT Pertamina (Persero), A. Salyadi Saputra, and the Director of Business Development & Marketing of  Sonatrach, Ferhat Ounoughi. The ceremony was witnessed by the President Directors of PT Pertamina Hulu Energi (PHE) and PT  Pertamina Internasional EP (PIEP) at  Sonatrach's Headquarters on Wednesday, December 20, 2023, local time.

Salyadi Saputra, Director of SPPU of PT Pertamina (Persero), explained that this MOU amendment is an extension of the previously signed MOU in 2021, prolonging the collaboration between the two parties until 2025.

"The Amendment of the MOU between Pertamina and  Sonatrach demonstrates  Pertamina's commitment to exploring opportunities beyond national borders and expanding its business on the global stage," he stated.

This MOU amendment signing aims to further strengthen the relationship between the two parties following the signing of a new contract for block 405A management on June 15, 2023. "With this momentum, we hope to explore more opportunities for collaboration in managing oil and gas blocks that Pertamina can obtain, continuing the collaboration and synergy between  Pertamina and  Sonatrach to pursue integrated collaboration from upstream to downstream, including new and renewable energy," added Salyadi.

Pertamina is interested in the possibility of partnerships through joint exploration and exploitation blocks with  Sonatrach and looks forward to these opportunities, not only in Block 405A but also in surrounding areas with potential oil and gas reserves.

Fadjar Djoko Santoso, Vice President of Corporate Communication of Pertamina, added that Pertamina's upstream oil and gas operations abroad are carried out by PIEP, a subsidiary under Pertamina's Upstream Subholding. PIEP manages international assets, primarily on acquiring and managing oil field operations and seeking oil resources in various countries. The goal is to fulfill domestic oil needs and support national energy security.

PIEP has owned oil field assets abroad spread across 12 countries, including Algeria, Malaysia, Iraq, France, Italy, Namibia, Tanzania, Gabon, Nigeria, Colombia, Angola, and Venezuela.

"Pertamina, through PIEP, aims to continually increase oil and gas investments in Algeria, considering it a priority for growth due to our existing footprint. This collaboration also presents an opportunity to unlock Algeria's business value, including synergy with other future opportunities for continuous expansion," concluded Fadjar.

In Algeria, PIEP, alongside its partners Sonatrach and  Repsol Exploracion 405A SA, manages the Menzel Lejmat Nord (MLN) block in Block 405A and nine other areas, including the Ourhoud and El Merk unitizations. Block 405A has the potential to yield a peak production of 36,000 barrels of oil equivalent per day (BOEPD).

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social, and Governance (ESG) implementation across all Pertamina's business lines and operations.

Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd