Exploring New Opportunities in the Upstream Oil and Gas Sector, State-Owned Energy Company of Tanzania Partners with Pertamina
Bali, September 4, 2024 – The high energy demand has driven African Countries to explore potential collaborations in the oil and gas sector with Indonesia. One collaboration has been established between Tanzania Petroleum Development Corporation (TPDC), the national oil company of Tanzania, and PT Pertamina Internasional EP (PIEP), a subsidiary of PT Pertamina Hulu Energi (PHE), which is a Pertamina upstream subholding.
The partnership between TPDC and Pertamina is stated through a Memorandum of Understanding (MoU) signed on August 22, 2023, by the President Director of Pertamina and the Managing Director (MD) of TPDC.
Pertamina, through PIEP and TPDC, has already completed the first batch of capability building and the evaluation of upstream blocks agreed upon by both parties. However, there remains potential for collaboration in the upstream and downstream streams and further activities for the second batch of capability building.
In follow-up discussions, Pertamina's Business Development Function and TPDC have discussed plans to amend the MoU, specifically to extend its duration. The extension of the MoU between Pertamina and TPDC is intended to prolong the agreement for an additional year.
The partnership agreement between TPDC and Pertamina is stated through an Amendment to the MoU, signed on August 30, 2024, by the President Director of PT Pertamina (Persero), Nicke Widyawati, followed by a document exchange during the Indonesia-Africa Forum in Bali, Indonesia, on Tuesday (September 3, 2024).
The event was attended by TPDC Board Chairman, Ambassador Ombeni Sefue; President Director of PT Pertamina (Persero), Nicke Widyawati; President Director of PT Pertamina Internasional EP (PIEP), Jaffee Arizon Suardin; Zanzibar Minister of Labour, Economic Affairs & Investment, Shariff Ali Shariff; Deputy Minister of Foreign Affairs & East Africa Cooperation, Cosato David Chumi; and Ambassador to Indonesia of Tanzania, Macocha Tembele.
The MoU between TPDC and Pertamina encompasses knowledge exchange programs, capacity building, and collaborative research efforts that could further enhance the ability of both parties to adopt and implement sustainable energy practices.
Additionally, both parties are exploring investment partnerships. "This energy sector collaboration is expected to strengthen the resilience of Indonesia and Africa in creating a more interconnected and robust energy network," said Arya Dwi Paramita, Corporate Secretary of Pertamina Upstream Subholding.
Previously, Pertamina and TPDC completed assessments of two oil and gas blocks in Tanzania: West Songo-Songo and North Mnazi Bay. Both companies continue to explore business potential in Tanzania's non-upstream sector, which could support Pertamina’s overall performance and cross-sub holding operations.
VP of Corporate Communication of Pertamina, Fadjar Djoko Santoso, mentioned that the Pertamina group’s footprint in various African countries has been established since 2013. Recognizing Africa’s vast potential, Pertamina continues to build strategic partnerships across the continent.
"The partnership with Tanzania proved Pertamina’s commitment to growing alongside several African countries. There is still much energy potential to be developed, which will benefit both parties," Fadjar stated.
PHE remains committed to maintaining business practices aligned with sustainable investment trends and the Environmental, Social, and Governance (ESG) principles, emphasizing the safety aspect. PHE adheres to the Ten Principles of the United Nations Global Compact (UNGC) in its strategy and operations, having been a participant (member) of the UNGC since June 2022.
In support of governance, PHE is also committed to a Zero Tolerance Bribery policy, which ensures fraud prevention and keeps a company free from bribery. One of the initiatives includes implementing the Anti-Bribery Management System (SMAP), standardized under ISO 37001:2016.
PHE continues to develop prudent and excellent operational management domestically and internationally to become a world-class oil and gas company with a reputation for being environmentally friendly, socially responsible, and governed by good practices.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**