Sonatrach, the Algerian state-owned oil company, and Pertamina, its Indonesian partner, have signed a Memorandum of Understanding (MoU) to maintain their strategic collaboration to expand their portfolio of activities in Algeria and beyond.
Toufik Hakkar, Sonatrach’s Chief Executive Officer, and Nicke Widyawati, Pertamina’s Chief Executive Officer, signed the MoU.
Upstream, midstream, and downstream are all covered under the agreement. Existing and/or new upstream projects, crude oil and LPG supply, renewable energies, and R&D are all possibilities that are covered in the agreement.
Sonatrach, according to Hakkar, is eager to continue to investigate and find new oil and gas investment prospects in Algeria and overseas that would benefit both the Algerian company and Pertamina.
He said: “We welcome the signing of this new Memorandum of Understanding, which demonstrates the will of the two parties to strengthen their existing relations.”
“Aware of future environmental and economic challenges, Sonatrach has already initiated, internally and in collaboration with its partners such as Pertamina, reflection on the transformations to be made in its various activities, to reduce greenhouse gas emissions.”
“The conclusion of the Memorandum of Understanding confirms, once again, the interest of the oil and gas companies for the Algerian mining sector.”
As the oil and gas industry is enjoined to engage the energy transition and move toward decarbonization, Widyawati commended Sonatrach for its collaboration and noted that Pertamina is confident in its ability to overcome numerous problems the industry will face in the future.
She said: “The National Hydrocarbon Companies such as Pertamina and Sonatrach must be at the forefront of the national interest, in particular by guaranteeing the supply of energy on the domestic market.”
“Oil and gas companies need to think creatively and carefully to manage their portfolios.”
PERTAMINA and SONATRACH
Since 2002, Pertamina has established commercial contacts with Sonatrach for the acquisition of crude oil shipments. Currently, through its upstream subsidiary, PT Pertamina International Exploration & Production (PIEP), Pertamina owns a stake and operates with Sonatrach and another partner at the MLN field and its satellites, the first Pertamina’s upstream asset abroad.