Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Pertamina to Proceed With Algeria Oil Field Buy, Official Says

Jan. 22 (Bloomberg) -- PT Pertamina, Indonesia’s state-owned oil company, will proceed with a bid to buy stakes in three Algerian oil fields from ConocoPhillips to expand its overseas assets.

“We are going ahead with the acquisition because we have signed an agreement with ConocoPhillips,” Ali Mundakir, Pertamina’s vice president of corporate communications, said at a natural gas conference in Jakarta today. “We target to complete the transaction by the middle of this year.”

ConocoPhillips announced on Dec. 18 that it signed an agreement with Pertamina to sell its Algerian unit for $1.75 billion. The transaction is moving ahead even after a terrorist attack on a natural gas complex operated by BP Plc, Norway’s Statoil ASA and Sonatrach Petroleum Corp., Algeria’s state-owned oil company, that killed at least 38 workers.

Completion of the deal is subject to approval from the Algerian government and also contingent on ConocoPhillips’ partners waiving their rights to buy the stake, Mundakir said. The purchase gives the Indonesian company a 65 percent interest at the Menzel Lejmat North field, along with 3.7 percent of the Ourhoud and 16.9 percent of the EMK sites.

The partners in the areas include Talisman Energy Inc., Anadarko Petroleum Corp., Eni SpA and Sonatrach, according to ConocoPhillips’s website.

Pertamina plans to produce 222,000 barrels of oil a day this year, including output from its subsidiaries PT Pertamina EP and PT Pertamina Hulu Energi, Mundakir said. The company produced an estimated 200,000 barrels daily in 2012, he said.

Pertamina expects the Algeria purchase to add 23,000 barrels a day of crude output, it said in a Dec. 18 statement.

To contact the reporter on this story: Fitri Wulandari in Jakarta at fwulandari@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.