Pertamina Manages Oil And Gas Blocks In Algeria For The Next 35 Years

JAKARTA - Pertamina manages the oil and gas block (oil and gas) Menzel Ledjmet Nord (MLN), Algeria for the next 35 years after obtaining an extension of the concession contract in managing the block.

President Director of PT Pertamina (Persero) Nicke Widyawati said the oil and gas block in Algeria is one of the mainstay contributors to oil and gas production from abroad for the company.

"The acquisition of oil and gas blocks abroad with the concept of Bringing the barrel home is Pertamina's strategic step to maintain national energy security," Nicke said in a statement quoted by ANTARA, Saturday, June 17.

The contract extension, which was signed in Aljir, Algeria, Thursday (15/6), shows the Algerian Government's trust in Pertamina's performance.

Nicke said that in the new contract, apart from crude oil production, Pertamina was also given permission to build an LPG factory with a capacity of 1 million metric tons per year, where its products will be brought to Indonesia.

"With this new breakthrough, it is hoped that it can reduce LPG imports and strengthen Indonesia's trade balance," said Nicke.

At the same time, the Algerian oil and gas block also has potential in developing renewable energy, especially Solar PV which will be used as a green electRICity supply for oil and gas block operations.

"This is a very strong form of Pertamina's commitment to reducing carbon emissions in all its business activities in line with the implementation of ESG (environmental, social, and governance)," he said.

MLN Oil Field Algeria is one of the oil and gas fields in the Sahara Desert, Algeria, which has been fully operational by Pertamina since May 2014 via upstream subholding.

The block has an oil capacity of 35,000 barrels of oil per day (BOPD) and has 58 solar panels that produce 1,141 kilowatt hour (kWh) per year, which has an impact on reducing emissions by 7,507 tons of CO2 per year.