"This mega acquisition will increase Pertamina`s production."Jakarta (ANTARA News) - Indonesia`s state-owned oil and gas company PT Pertamina has signed an agreement to acquire ConocoPhillips Algeria Ltd. controlling Block 405a in Algeria with an estimated price of Rp16.8 trillion (US$1.75 billion).
The company`s president director, Karen Agustiawan, in a press statement received here on Tuesday said the acquisition of the subsidiary of the US multinational oil and gas company would increase Pertamina`s crude oil production up to 35,000 barrels a day in 2013.
The signing of the acquisition agreement was done here on Tuesday evening.
"The agreement is effective upon the implementation of the right to pre-emption of ConocoPhillips`s partner in Block 405a and an agreement from the Algerian government," she said.
She hoped the deal could be settled in the first semester of 2013.
Block 405a, which is controlled by ConocoPhillips Algeris Ltd., consists of three main oil fields namely Menzel Lejma North, Ourhoud and EMK fields
In the Menzel Lejma North field ConocoPhillips Algeria Ltd. has 65 percent of participating right and also acts as its operator.
The participating interest of ConocoPhillips Algeria Ltd. in Ourhoud meanwhile is 3.7 percent and in EMK 16.9 percent and the company has no operator rights in the two fields.
In 2012, Block 405a`s production reaches more than 35,000 barrels a day and so the portion for ConocoPhillips Algeria Ltd. reached around 23,000 barrels.
"This mega acquisition will increase Pertamina`s production significantly immediately by 23,000 barrels while the crude to be produced has a high quality," Karen said
She even said that Pertamina`s production from Block 405a could increase by around 35,000 barrels a day when the EMK field starts production.
Pertamina`s additional reserve from the block is estimated to be more than 100 million barrels of oil.
"This is a milestone development of Pertamina`s expansion in the downstream business," she said.
Karen said she hoped she could cooperate closely with Sonatrach, the Algerian state-owned oil and gas company, and partner companies in Block 405a to maximize oil production in the block.
ConocoPhillips which is headquartered in Houston, Texas, USA, operates in 30 states with assets reaching US$115 billion until September 30, 2012.
Its net assets meanwhile are estimated at US$850 million by October 2012 while its average production is at 157 million barrels of oil equivalent per day in the past nine months this year and its proven reserves reached 8.4 billion of oil equivalent by December 31, 2011.
(Tz.K007/Uu.H-YH/A014)
Editor: Priyambodo RH
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