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.
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