New Contract, Pertamina to Develop Oil and Gas Block in Algeria for the Next 35 Years

Jakarta, June 17, 2023 - Pertamina has secured a contract extension for Menzel Ledjmet Nord (MLN) block management in Algeria. In the contract signed in Algiers on Thursday, June 15, the Algerian government entrusted Pertamina with oil and gas block management for the next 35 years. This extension demonstrates the Algerian government's confidence in Pertamina's performance.

Nicke Widyawati, President Director of PT Pertamina (Persero), stated that oil and gas block in Algeria is one of the main contributors to the company's foreign oil production. "Acquiring oil and gas blocks overseas with the concept of 'bring the barrel home' is a strategic step for Pertamina to maintain national energy security," said Nicke.

Nicke added that in this new contract, in addition to crude oil production, Pertamina has also been granted permission to build an LPG plant with a capacity of 1 million metric tons per year, in which the products will be brought to Indonesia.

"With this breakthrough, we hope to reduce LPG imports and strengthen Indonesia's trade balance," added Nicke.

At the same time, this Algerian oil and gas block also has the potential for renewable energy development, particularly solar PV, which will be utilized as a green electricity supply for the block's operations.

"This is a concrete manifestation of Pertamina's strong commitment to reducing carbon emissions in all its activities following the ESG implementation," emphasized Nicke.

Menzel Ledjmet Nord (MLN) Oil Field Algeria is one of the oil fields in the Sahara Desert, Algeria, fully operated by PT Pertamina (Persero) since May 2014 through its upstream sub-holding.

This block has an oil capacity of 35,000 barrels of oil per day (BOPD) and has 58 solar panels generating 1,141 kilowatt-hours (kWh) per year, resulting in an emission reduction of up to 7,507 tons of CO2 per year.

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.**