Pertamina Buys ConocoPhillips' Algeria Assets

JAKARTA--Indonesian state-owned oil and gas company PT Pertamina said Thursday it has completed the $1.75 billion purchase of ConocoPhillips's assets in Algeria, its first successful major acquisition overseas.

Pertamina, Indonesia's largest oil and gas firm by output, has been eyeing overseas assets in recent years to secure energy supply to meet the country's needs.

Pertamina first announced plans to buy the Algerian assets last year. Back then, Pertamina said the acquisition would boost its crude oil production by 23,000 barrels per day from 196,000 b/d. Pertamina is targeting crude-oil production of 244,000 b/d by the end of the year.

With the acquisition, Pertamina now holds a 65% stake in Block 405a, which contains three main oil fields: Menzel Lejmat North (MLN), Ourhoud, and EMK, it said.

Pertamina also assumes operatorship of the MLN field.

"This major acquisition provides Pertamina with significant volumes of high quality crude and represents a key milestone in our international upstream business expansion efforts," said President Director and CEO, Karen Agustiawan, in a news release. Pertamina will work closely with its partners and the Algerian authorities "to fully develop the oil production potential of the Block," she said.

Write to I Made Sentana at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires