Algerian state-owned oil company Sonatrach has signed an agreement with Pertamina to strengthen cooperation in the upstream and downstream sector.

The signing of agreement was witnessed by Algerian Energy Minister Noureddine Bouterfa, the Indonesian Energy and Mineral Resources Ministry’s oil and gas director general IGN Wiratmaja Puja as well as Indonesian Ambassador to Algeria Safira Machrusah.

According to President Director & CEO of PT Pertamina, Dwi Soetjipto, the deal, which is a continuation of an agreement signed in 2012, would assist the two companies in developing their capacity and establish a partnership in the North African country and other parts of the world.

“We will conduct an analysis and evaluation regarding opportunities for exploration as well as participation in upstream and downstream [activities] and oil and gas services in Algeria, Indonesia and other countries,” he said.

The agreement also allows the companies to exchange information on liquefied natural gas (LNG) and work together to conduct research and human resource development as well as trade in the oil, gas and petrochemical sector.

The CEO added that the partnership in the upstream sector is the first step, as Pertamina looks to prove its ability as operator in Algeria’s Menzel Lejmat North (MLN) oil field which it acquired from ConocoPhillips, and in Algerian blocks, El Merk (EMK) and Ourhoud owned by the company.

Pertamina had been importing 6 million barrels of oil per year from Algeria and expects to increase the number through capacity development, Jakarta Post reports.

Anita Fatunji