Sunday, November 24, 2024

Pertamina secures 65% stake in Algerian oil refinery to enhance national energy security

Reading Time: 2 minutes
Julian Isaac

Journalist

Mahinda Arkyasa

Editor

Interview

In effort to fulfill national energy needs and achieve energy security, state-owned oil and gas company Pertamina had been actively seeking energy sources both domestically and internationally.

One of the international oil fields controlled by Pertamina is the MLN Oil Fields in Algeria, where Pertamina currently controls 65% participating interest.

The MLN Oil Field is located in the Sahara Desert, approximately 1,000 kilometers (km) to the southeast of Algiers, the capital city of Algeria.

The oil field’s daily production capacity currently sits at 35,000 barrels of oil per day (bopd). However, its actual daily oil production from January to May 2023 had only reached 14,875 bopd.

In addition, in an effort to meet the need for new and renewable energy, MLN oil fields is powered by 58 solar panels that produce 1,141 KWH per year and can reduce emissions of 7,507 tons of CO2 equivalent per year.

Purchased in 2014

Pertamina had been operating the MLN Oil Field since May 2014 after it became the owner of the operator Block 405A in Algeria, which was previously owned by ConocoPhillips Algeria Ltd.

Cost for the ownership rights takeover reached up to US$ 1.75 billion and was recognized as a legal moe by the Algerian government. With 65% participating interest, Pertamina has the right to act as the operator at MLN Oil Field.

The MLN Oil Field is managed by Pertamina Algeria EP (PAEP) as a subsidiary of PT Pertamina Internasional EP (PIEP). PIEP itself is part of Pertamina’s Upstream Sub-holding which manages the international upstream work area.

PIEP plays a key role in cooperating with foreign partners and operation in four continents and 12 countries to support Pertamina’s achievement as a world-class energy company.

“This is Pertamina’s effort to fulfil national energy security, not only domestically, but we are also looking for opportunities abroad,” said Nicke Widyawati, Main Director of Pertamina during a visit to MLN, on June 13, 2023.

Appreciation to workers

Widyawati admits that she is proud and appreciates all workers, because working far from Indonesia with its location in the middle of the Sahara Desert like MLN is definitely full of challenges.

“I am very proud of all my colleagues, who have worked hard to fulfil the state’s mandate in realizing national energy security. Of course it is not easy and there are many challenges,” said Widyawati.

Widyawati also appreciated MLN’s performance, which since operating until now has managed to maintain zero fatality and zero lost time incidents with a total man hours of more than 23 million hours.

“This oil and gas field is certainly full of challenges, therefore I encourage it to continue to innovate through initiatives to increase production so that it is hoped that later it can increase investment and boost MLN’s performance,” said Widyawati.

Julian Isaac

Journalist

Mahinda Arkyasa

Editor

 

Interview

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