Exxon Secures Business Certainty Until 2055, Adds US$10 Billion Investment
The government has confirmed the extension of American oil and gas company ExxonMobil's operations until 2055, with an additional planned investment of approximately US$10 billion. This certainty was provided as part of the broader energy cooperation framework between Indonesia and the United States.
Energy and Mineral Resources Minister Bahlil Lahadalia announced the extension during a virtual press conference on Friday evening (20 February 2026), following President Prabowo Subianto's visit to Washington where the two countries signed an Agreement on Reciprocal Trade (ART).
The investment is aimed at maintaining and increasing oil production (lifting) levels, which currently range between 170,000 and 185,000 barrels per day. Efforts to boost production require support for advanced technology, optimisation of existing fields, and strengthening of human resource capacity.
The extension relates to ExxonMobil's operations at the Cepu Block, where ExxonMobil Cepu Limited holds a 45 per cent participating interest in the block located in East Java. The Banyu Urip field within the Cepu Block is one of Indonesia's most significant onshore oil production assets.
Bahlil emphasised that in the negotiations, the government would prioritise the national interest as directed by President Prabowo, in accordance with Article 33 of the 1945 Constitution. Several aspects still need to be finalised before the final agreement is signed, including clarifying cost recovery and revenue-sharing arrangements between state revenue and contractor payments.
As part of the broader energy trade agreement, Indonesia has committed to purchasing energy products from the United States worth approximately US$15 billion (Rp253 trillion). This includes liquefied petroleum gas (LPG) purchases of approximately US$3.5 billion, crude oil purchases of approximately US$4.5 billion, and refined fuel products worth approximately US$7 billion.
Bahlil assured that the energy purchases would not add to the national import quota, but rather represented a redirection of existing procurement sources to strengthen bilateral trade relations with the United States.
Separately, ExxonMobil has also committed to investing in carbon capture and storage (CCS) projects and a petrochemical complex in Indonesia, with initial investment estimated at US$10 billion and total long-term commitments potentially reaching US$15 billion. The CCS technology is projected to reduce carbon emissions by up to 90 per cent, with storage capacity of 3 million tonnes of CO2.
Energy and Mineral Resources Minister Bahlil Lahadalia announced the extension during a virtual press conference on Friday evening (20 February 2026), following President Prabowo Subianto's visit to Washington where the two countries signed an Agreement on Reciprocal Trade (ART).
The investment is aimed at maintaining and increasing oil production (lifting) levels, which currently range between 170,000 and 185,000 barrels per day. Efforts to boost production require support for advanced technology, optimisation of existing fields, and strengthening of human resource capacity.
The extension relates to ExxonMobil's operations at the Cepu Block, where ExxonMobil Cepu Limited holds a 45 per cent participating interest in the block located in East Java. The Banyu Urip field within the Cepu Block is one of Indonesia's most significant onshore oil production assets.
Bahlil emphasised that in the negotiations, the government would prioritise the national interest as directed by President Prabowo, in accordance with Article 33 of the 1945 Constitution. Several aspects still need to be finalised before the final agreement is signed, including clarifying cost recovery and revenue-sharing arrangements between state revenue and contractor payments.
As part of the broader energy trade agreement, Indonesia has committed to purchasing energy products from the United States worth approximately US$15 billion (Rp253 trillion). This includes liquefied petroleum gas (LPG) purchases of approximately US$3.5 billion, crude oil purchases of approximately US$4.5 billion, and refined fuel products worth approximately US$7 billion.
Bahlil assured that the energy purchases would not add to the national import quota, but rather represented a redirection of existing procurement sources to strengthen bilateral trade relations with the United States.
Separately, ExxonMobil has also committed to investing in carbon capture and storage (CCS) projects and a petrochemical complex in Indonesia, with initial investment estimated at US$10 billion and total long-term commitments potentially reaching US$15 billion. The CCS technology is projected to reduce carbon emissions by up to 90 per cent, with storage capacity of 3 million tonnes of CO2.