Pertamina Ships First Crude Oil Lifting from Algeria to Indonesia Under Extended Block 405A PSC

• 25 Dec 2025
• dukut.nugroho

Jakarta/Algiers — PT Pertamina Internasional EP (PIEP), the International Regional subsidiary of PT Pertamina Hulu Energi (PHE), Pertamina’s Upstream Subholding, completes its first shipment of 1 million barrels of crude oil lifting from Algeria's 405A Block to Indonesia. The shipment marks a major milestone in Pertamina’s global upstream expansion and international portfolio strengthening. 

The first lifting represents the initial production under the extended Production Sharing Contract (PSC) of Block 405A, which secures Pertamina’s operational presence in Algeria for the next 25 years. The milestone reflects Pertamina’s “Bring the Barrel Home” initiative, reinforcing Indonesia’s national energy security through overseas production. 

Pertamina and Algeria’s national oil company SONATRACH have maintained a commercial relationship for more than 25 years, underscoring a long-standing, resilient, and value-driven strategic partnership. Cooperation began in 2002–2003 through annual contracts, evolved into spot transactions between 2006 and 2013, and entered a significant expansion phase in 2014 following Pertamina’s acquisition of operatorship rights in the Menzel Lejmat (MLN) field. 

Ahead of the lifting, both companies signed a Lifting Service Contract on 22 December 2025 at SONATRACH Headquarters. The agreement was signed by President Director of Pertamina Algeria EP (PAEP), Jon Erwin, and Mr. Mayouf Belgacem, Vice President Commercialization of SONATRACH, and was witnessed by SONATRACH President & CEO Noureddine Daoudi, Ambassador of the Republic of Indonesia to Algeria Chalief Akbar, and President Director of PIEP Syamsu Yudha. 

President Director of PIEP Syamsu Yudha stated that the first lifting is a strategic milestone for Pertamina’s international growth. “This achievement reinforces Pertamina’s role as a competitive international oil and gas player while fulfilling our mandate to strengthen Indonesia’s energy security through excellent and sustainable operations in Algeria,” he said. 

President Commissioner of PIEP Dharmawan H. Samsu emphasized that the milestone was achieved through extensive diplomacy and negotiations. “The first shipment of 1 million barrels to Indonesia highlights the strategic importance of the 25-year extension of Block 405A. This is a significant achievement following an intensive and complex contract negotiation process,” he noted. 

Meanwhile, President Director of PAEP Jon Erwin highlighted that close collaboration with SONATRACH has provided a strong legal and operational foundation to optimize the potential of Block 405A, delivering mutual benefits for both Indonesia and Algeria. 

Indonesian Ambassador to Algeria Chalief Akbar, who witnessed the lifting operation at Port Arzew, said the activity represents more than a commercial transaction. “This shipment is a strong symbol of the bilateral relationship between Indonesia and Algeria. The Government of Indonesia will continue to support Pertamina’s efforts to strengthen future energy cooperation and national energy security,” he affirmed. 

The successful shipment reflects integrated synergy across Pertamina’s Subholdings, involving PHE through PIEP and PAEP as overseas hydrocarbon producers, PT Pertamina International Shipping (PIS) as the international shipping operator, and PT Kilang Pertamina Internasional (KPI) as the domestic buyer and refinery operator. 

Through sustained collaboration and operational excellence, PIEP remains committed to optimizing the full potential of Block 405A, supporting Indonesia’s long-term energy security while strengthening the strategic partnership between Indonesia and Algeria.

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