Situated in the Sahara Desert of Algeria, the MLN Oil Block in Algeria has witnessed a significant development as Pertamina, the Indonesian state-owned oil and gas corporation, secures a 35-year contract extension to develop and operate the block. Recently finalized through an agreement signed between Pertamina and the Algerian Government on June 15th, this contract extension marks a crucial milestone for Algeria’s energy sector.
Strengthening Algeria’s Energy Sector: Pertamina Secures 35-Year Extension for MLN Oil Block
As part of this contract extension, Pertamina has also obtained permission to construct a state-of-the-art Liquefied Petroleum Gas (LPG) plant with an impressive capacity of one million tons per year. This plant will play a vital role in exporting gas to Indonesia, thereby contributing to Algeria’s trade balance.
Pertamina’s strategic approach of acquiring oil and gas blocks abroad aligns perfectly with Algeria’s goal of enhancing national energy security. Moreover, Pertamina CEO, Nicke Widyawati, emphasized the significance of this achievement, stating, “With this breakthrough, we aim to reduce LPG imports and strengthen Algeria’s trade balance.” This strategic move not only reinforces Algeria’s energy independence but also contributes to the overall economic stability of the country.
The MLN Oil Block in Algeria is an impressive asset, with a daily oil production capacity of 35,000 barrels. Moreover, it demonstrates a commitment to renewable energy through the integration of 58 solar photovoltaic panels, generating 1,141 kWh annually. By harnessing solar energy to support its operations, the MLN Oil Block contributes to a substantial reduction of up to 7,507 tons of CO2 emissions per year.
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The contract extension serves as a testament to the success of Pertamina’s existing 2014 contract for the development of the MLN Oil Block in Algeria. This initial contract followed Pertamina’s acquisition of a participating stake in ConocoPhillips’ Algerian business unit, ConocoPhillips Algeria Ltd., in December 2012.
With the contract extension secured and plans underway for the construction of the LPG plant, Pertamina’s contribution to Algeria’s energy sector and trade balance is set to strengthen further. These developments solidify Pertamina’s position as a strategic partner for Algeria’s oil and gas industry.
