By Deden Sudrajat and I Made Sentana
JAKARTA--Indonesian state-owned oil and gas company PT Pertamina
said Thursday it has completed the $1.75 billion purchase of
ConocoPhillips's assets in Algeria, its first successful major
acquisition overseas.
Pertamina, Indonesia's largest oil and gas firm by output, has
been eyeing overseas assets in recent years to secure energy supply
to meet the country's needs.
Pertamina first announced plans to buy the Algerian assets last
year. Back then, Pertamina said the acquisition would boost its
crude oil production by 23,000 barrels per day from 196,000 b/d.
Pertamina is targeting crude-oil production of 244,000 b/d by the
end of the year.
With the acquisition, Pertamina now holds a 65% stake in Block
405a, which contains three main oil fields: Menzel Lejmat North
(MLN), Ourhoud, and EMK, it said.
Pertamina also assumes operatorship of the MLN field.
"This major acquisition provides Pertamina with significant
volumes of high quality crude and represents a key milestone in our
international upstream business expansion efforts," said President
Director and CEO, Karen Agustiawan, in a news release. Pertamina
will work closely with its partners and the Algerian authorities
"to fully develop the oil production potential of the Block," she
said.
Write to I Made Sentana at i-made.sentana@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires