Pertamina eyes a 45 Percent Increase in Oil Production in Algeria

KATADATA -Algeria has allowed Indonesian oil and gas giant Pertamina to increase its oil and gas production, but Pertamina will not be doing that this year. 

Algeria’s oil and gas regulatory agency, Alnaft, has given Pertamina permission to produce 54,300 barrels of oil equivalent per day (boepd), much higher than last year’s production of 39,000 boepd. However, Pertamina has a production target of 38,000 boepd this year. 

Pertamina’s VP for Corporate Communication, Wianda Pusponegoro, said this year the firm only expects to produce 20,000 barrels of oil per day in Algeria. 

Wianda believes that a 45 percent increase would only be possible in three years’ time. Pertamina’s production target for 2019 is 29,000 barrels per day. The Revised Development Plan (RDP) 2015 has confirmed this. 

Oil and gas blocks in Algeria are a promising prospective for Pertamina. Wianda said the oil and gas reserves in Algeria are four times Indonesia’s. With the slide in global oil prices, Pertamina needs to make good use of this opportunity to operate oil and gas blocks overseas. 

Tanri Abeng, President Commissioner of Pertamina, continues to urge that the oil and gas giant acquire overseas oil and gas blocks. Tanri predicts domestic oil and gas production will continue to fall. 

Pertamina’s Director for Upstream Oil and Gas Affairs, Syamsu Alam, confirmed that the investment climate in Algeria is positive because reserves there have been proven and are ready for development. 

One of the options for Pertamina to enter and operate oil and gas blocks in Algeria is by partnering with Algerian oil and gas firm Sonatrach. “We’ll form a team to evaluate the possibility because there are several oil and gas blocks that are not planned for development, so there may be an opportunity for a joint [venture],” Syamsu explained.