Kuala Lumpur. Indonesian state-controlled oil and gas company Pertamina inked a cooperation agreement with Algerian oil and gas company Sonatrach in Kuala Lumpur on Wednesday.
The deal includes an exchange of expertise in matters related to hydrocarbon research and development in Indonesia, Algeria and elsewhere.
Sonatrach and Pertamina also agreed to exchange information regarding the gas industry and its derivatives.
Afdal Bahaudin, Pertamina’s director of investment planning and risk management, said the cooperation carried great strategic value for both parties. “I think it is a good opportunity for Pertamina in particular, and the government of Indonesia in general,” he said.
The agreement was signed by Afdal and Kamel Eddine Chikhi, a director at Sonatrach, during the four-day World Gas Conference that ends today in the Malaysian capital.
Also present at the signing ceremony were Algerian Minister of Energy and Mines Youcef Yousfi and Sonatrach president director Abdelhamid Zerguine.
Late last month, Pertamina signed similar agreements with three foreign oil and gas companies.
The agreements came in the form of memorandums of understanding with the Kuwait Foreign Petroleum Exploration Company, HESS Venture and the Korea National Oil Corporation.
Indonesia has been trying to raise domestic oil production to one million barrels per day since exiting the Organization of the Petroleum Exporting Countries in 2008.
In the current state budget, the country has set its oil production target at 930,000 barrels per day. Indonesia’s oil output reached 903,400 bpd last year, less than the 945,000 bpd target in the state budget.
Aging equipment has hurt efficiency at many oil fields, and declining reserves have not helped.