Oil from conocophilips Algeria to feed Pertamina`s refineries

Oil from conocophilips Algeria to feed Pertamina`s refineries

Photo document of ConocoPhillips Algeria Ltd. project. (panoramio.com)

ConocoPhillips Algeria Ltd, which controls 405a Block was acquired by Pertamina.
Jakarta (ANTARA News) - State oil and gas company PT Pertamina said oil from its newly acquired 405a Block operated by ConocoPhillips Algeria Ltd in the North African country will be used to feed its oil refineries in the country.

Shipment of the crude oil from Algeria to Indonesia, however, is yet to be discussed, Senior Vice President for Corporate Investment and Business Development of Pertamina Gusrizal said here on Wednesday.

On Tuesday, Pertamina signed an agreement here to acquire ConocoPhillips Algeria Ltd, a subsidiary of the US oil giant ConocoPhillips in Algeria.

ConocoPhillips Algeria Ltd, which controls 405a Block was acquired by Pertamina at a price of Rp16.8 trillion.

The acquisition of the block will add 35,000 barrels of crude oil per day to its total production in 2013.

Pertamina hopes the process of acquisition would be wrapped up in the first half of 2013.

The block consists of three main oil fields -- Menzel Lejmat North, Ourhoud, and EMK.

ConocoPhillips Algeria Ltd is the operator of the Menzel Lejmat North oil field in which it has a 65 percent participating interest (PI).

ConocoPhillips Algeria Ltd also has a 3.7 percent stake in the Ourhoud oil field and 16.9 percent in EMK oil field.

Currently, the block produces more than 35,000 barrels of crude oil per day and ConocoPhillips Algeria`s share of the production is around 23,000 barrels per day.

Pertamina`s oil production would have an additional production of 35,000 barrels per day from the block when the EMK oil field starts production in 2013.

With the block, Pertamina will also have an additional oil reserves of more than 100 million barrels.

The net assets of ConocoPhillips Algeria Ltd is recorded at US$850 million by Oct. 31 , 2012.
(Uu.AS/H-ASG/S012)

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