Indonesian state-owned oil and gas corporation Pertamina has secured a 35-year contract extension to develop the Menzel Ledjment Nord (MLN) block, situated in the Sahara Desert in Algeria.
Under the contract, which was signed between Pertamina and the Algerian Government on 15 June, Pertamina has also been granted permission to construct a Liquefied Petroleum Gas (LPG) plant with a capacity of one million tons per year, which will be used to export gas to Indonesia.
“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,” stated Pertamina CEO, Nicke Widyawati, adding, “With this breakthrough, we hope to reduce LPG imports and strengthen Indonesia’s trade balance.”
Boasting an oil capacity of 35,000 barrels of oil per day, the MLN oil and gas block also comprises 58 solar photovoltaic panels, generating 1,141 kWh per year. Solar energy is utilized to support the blocks operations, resulting in an emission reduction of up to 7,507 tons of CO2 per year.
“This is a concrete manifestation of Pertamina’s strong commitment to reducing carbon emissions in all its activities following Environmental, Social and Governance implementation,” Widyawati added.
The agreement serves as an extension of Pertamina’s 2014 contract for the development of the MLN block following the Indonesian company’s acquisition of a participating stake in oil and gas supermajor ConocoPhillips’ Algerian business unit, ConocoPhillips Algeria Ltd., in December 2012.