Extend ExxonMobil contract for Cepu Block, Bahlil reveals key negotiating points

Jakarta — Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia is still negotiating with ExxonMobil regarding an extension of the Cepu Block contract at the border of East and Central Java. ‘The Exxon extension is currently under negotiation,’ he told reporters at the Ministry of Energy and Mineral Resources in Jakarta on Tuesday, 3 March 2026. He explained that the contract for managing Cepu Block by ExxonMobil Cepu Limited (EMCL) was due to end in 2035. The current shareholding composition for Cepu Block is 45% owned by Pertamina, 45% by ExxonMobil, and 10% by a regional government-owned corporation (BUMD). ‘From 2035 onwards, because they have discovered some new resources, there is a desire to extend,’ he said. The extension is what Bahlil acknowledged is still in negotiation. The points discussed in the negotiations concern revenue sharing from production, including how much goes to the government and how much to the company. In the negotiations, Bahlil stressed that government revenue rights were far more important, so he is considering the option that would be most beneficial for the country. ‘We haven’t yet found a consensus on that, but in principle we have agreed on the other aspects,’ he said. The Banyu Urip field in Cepu Block, Bojonegoro, East Java, is one of Indonesia’s largest oil fields operated by ExxonMobil Cepu Limited (EMCL). Before the Banyu Urip Infill Clastic (BUIC) project, Exxon production reached only 150,000 barrels per day. Now, after BUIC, the figure has risen to 180,000 barrels per day, or about 25–30% of national oil output.