Indonesia’s Pertamina has signed a memorandum of understanding (MoU) with Algeria’s Sonatrach.
The agreement sets the stage for co-operation from the up- to the downstream. In particular, it noted work on new or existing projects in the upstream, in addition to supply and shipping of crude and LPG.
It also allowed for the provision of a drilling fluid, Smooth Fluid, from Pertamina. Other areas included renewable energy, in particular solar photovoltaic (PV), and research and development.
Pertamina president director Nicke Widyawati signed the agreement with Sonatrach CEO Toufik Hakkar.
“NOCs such as Pertamina and Sonatrach must be at the forefront of the national interest, particularly in providing domestic energy,” said Widyawati.
The Indonesian official noted the role of the oil and gas industry in supporting the energy transition and in decarbonisation. “Oil and gas companies must think creatively and carefully to manage their portfolios”, he said.
Hakkar welcomed the new MoU. It demonstrated the “resolution of both parties to strengthen their existing relations”.
The two companies have already begun working on ways to reduce greenhouse gas emissions. “The conclusion of this agreement confirms, once again, the interest of the oil & gas companies in the Algerian mining domain,” Hakkar said.
Pertamina has bought oil cargoes from Sonatrach since 2002. The Indonesian company, via Pertamina International Exploration & Production (PIEP), is working on the MLN field in Algeria.
Hakkar was appointed to head Sonatrach in February 2020.
The country held elections on June 12. Turnout was low, at around 23%. Prime Minister Abdelaziz Djerad resigned last week as results came in. Talks are now under way to establish a new government, the Front de libération nationale (FLN) won the most votes.