Indonesian state-owned oil and gas firm Pertamina is aiming to increase its participation rights in Algeria’s Menzel Lejmat North (MLN) oil block. The company is in negotiations to take over 35 per cent stakes owned by Spanish energy company Repsol, but has not reached any deal, according to a spokesperson.
Deputy CEO of Pertamina, Ahmad Bambang, told reporters that his company is financially ready to enter an agreement with Repsol, which is planning to offload their participation rights due to “financial difficulties”.
“We have the money and are ready to expand. The cost of the acquisition is not yet listed in our capital expenditure for 2017. If the deal goes through, the capital expenditure will be larger,” Bambang said.
Currently, Pertamina holds 65 per cent interest in the MLN block. The company aims to increase it to 100 per cent following the acquisition. The nation’s largest energy firm also serves as operator for two other oil fields in Algeria, EMK and Ourhoud, with 16.9 per cent and 3.7 per cent ownership, respectively.
Pertamina has announced that it would arrange for financing of at least $5 billion to acquire new oil and gas fields in Iran and Russia next year. It is not considering to buy stakes in two oil and gas blocks in Iran, and had met with Iran’s oil minister during the recent Organization of the Petroleum Exporting Countries meeting in Vienna.
The company also said that it would maintain the import of liquified petroleum gas (LPG) from Iran, which may total up to 528,000 tonnes. It has planned to import up to 12 cargoes, each of which contains 44,000 tonnes of gas, in 2017.
In August, Pertamina agreed to acquire 24.53 per cent stakes in French private oil firm Maurel et Prom, and is planning to take over the rest in the future. The company signed a deal with Pacifico to purchase the shares for a price of 4.20 euros apiece plus a potential 0.50 euro earn-out per share. The earn-out will be paid under the condition that the Brent price remains above $65 per barrel during all trading days within a period of 90 consecutive calendar days, from January 1 to December 1, 2017.
In total, Pertamina will pay around 200 million euro to Pacifico. It will then launch a “voluntary tender offer” under the same conditions. Maurel et Prom is an independent oil company that focuses its operations in Africa. It owns and operates onshore production assets in Gabon and Tanzania, as well as 21.37 per cent stake in Seplat Petroleum, a leading Nigerian operator.