Pertamina and Repsol have signed up to invest $800 million in an Algerian block, extending their licence for 35 years.
Meanwhile, Sonatrach boss Toufik Hakkar has discussed Gazprom’s plans for Algeria. The Russian gas company will invest in the development of two fields in the North African state.
Pertamina
The two companies signed off on the plan last week with Sonatrach. The deal is for Block 405a, on Menzel Ledjmet Nord (MLN). The ground was set for the new production-sharing contract (PSC) in September 2022, under a memorandum of understanding (MoU).
Pertamina and Repsol agreed to a new work programme. This will involve the construction of a new LPG extraction unit, the drilling of 12 oil wells and one water injector and connection of new wells, combined with maintenance of existing wells.
The two foreign companies will also acquire 3D seismic, a water alternating gas (WAG) project, digitalisation work, a study on enhanced oil recovery (EOR) and solar power.
Sonatrach said the investment programme should allow the partnership to extract an additional 150 million barrels of oil equivalent.
“Acquiring oil and gas blocks overseas with the concept of ‘bring the barrel home’ is a strategic step for Pertamina to maintain national energy security,” said Nicke Widyawati, president of PT Pertamina.
The official said the new LPG plant would have 1 million tonnes per year of capacity. The company will export the products back to Indonesia.
“With this breakthrough, we hope to reduce LPG imports and strengthen Indonesia’s trade balance,” she said.
Pertamina has operated the MLN field since May 2014. It produces 35,000 barrels per day of oil, the company said. Repsol has a 35% stake in the licence, while Pertamina has 65%.
The PSC was signed under the 2019 hydrocarbons law. Sonatrach has signed three other such deals, S&P Global has said, with Eni, Sinopec and a consortium of Occidental, Eni and TotalEnergies.
Gazprom
Hakkar was talking to RT last week, during a state visit to Russia. The executive said Gazprom and Sonatrach were working together on two fields near Oum El Assel.
The companies have issued tenders for drilling and the construction of gas processing plants, he said, targeting first production in 2028.
Gazprom and Sonatrach submitted a development plan to Alnaft in July 2022, Hakkar said. The project involves a $950mn in a two-phase development. The project will produce 2 million cubic metres per day of gas, more than 1,000 tonnes per day of condensate and 220 tonnes per day of LPG.
“We will work together to develop these two discoveries, recently confirmed by a third [find], which will encourage partnership and support the development efforts of these deposits,” he told RT. “We have very good relations with Russian companies.”
Gazprom is a “reliable partner” for Sonatrach, he said. The two will co-operate to meet future gas demand, the official continued.
Officials have also said Lukoil is interested in Algerian opportunities.