Pertamina Completes Agreement to Acquire 10% Stake in West Qurna I

Indonesia's national oil and gas company PT Pertamina disclosed Saturday that its subsidiary PT Pertamina Irak Eksplorasi Produksi has completed closing an Asset Sales Agreement (ASA) with ExxonMobil Iraq Limited for a 10 percent participating interest in the West Qurna I oil block in southern Iraq.

Members of the West Qurna I consortium, including Royal Dutch Shell plc's unit Shell West Qurna B.V. and Oil Exploration Company of Iraq have approved the acquisition. ExxonMobil, which has a 25 percent in the block, will continue to be the lead contractor in West Qurna I.

ExxonMobil's affiliate ExxonMobil Iraq Limited and other West Qurna I consortium members signed an agreement with the South Oil Company of the Iraq Ministry of Oil in January 2010 to rehabilitate and redevelop the oil block. 

"Pertamina’s participation in West Qurna I contractor consortium is another stepping stone to achieve its vision to become world class energy company ... Pertamina’s overseas expansion is to support the government in sustaining and strengthening Indonesia’s energy security,” Karen Agustiawan, Pertamina's president and CEO said in a press release.

This is the second overseas acquisitions that Pertamina made in the last few days.

The company announced Thursday that it has completed the transaction with ConocoPhillips to acquire the latter's Algerian Business Unit, ConocoPhillips Algeria Limited (COPAL) for $1.75 billion.

The Algerian acquisition allows Pertamina to assume a 65 percent participating interest in Block 405a, which contains three main oil fields: Menzel Lejmat North (MLN), Ourhoud, and EMK. Pertamina will have a 65 percent participating interest and operatorship in the MLN field as well as 3.7 percent and 16.9 percent stakes in the Ourhoud and EMK fields, respectfully.

Pertamina plans to process crude oil produced from Block 405a at its refineries.


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