Government Plans to Extend ExxonMobil's Cepu Block Contract Until 2055

The Indonesian government is planning to extend the operational contract of US oil giant ExxonMobil at the Cepu Block until 2055. The decision would be accompanied by an additional investment of US$10 billion, equivalent to approximately Rp168.88 trillion at an assumed exchange rate of Rp16,888 per US dollar.

Energy and Mineral Resources Minister Bahlil Lahadalia revealed that the contract extension is an integral part of bilateral communications between the private sector in the United States and the Indonesian government, including with the US government. “We will extend it through to 2055 with a total investment adding approximately US$10 billion,” Bahlil said during a press conference streamed online via the Ministry of Energy and Mineral Resources’ YouTube channel on Saturday (21/2/2026).

The Cepu Block, located in East Java, is one of the country’s most strategically important upstream oil and gas areas. ExxonMobil has operated in Indonesia for over a century and is recognised as one of the Production Sharing Contract (PSC) contractors making the largest contributions to domestic oil lifting.

The company currently has a production capacity of between 170,000 and 185,000 barrels per day. Bahlil affirmed that ExxonMobil’s contribution is highly significant, placing it among the largest lifting contributors alongside Pertamina.

Nevertheless, Bahlil emphasised that the extension of ExxonMobil’s working contract is not yet finalised. Several aspects still require agreement, particularly regarding the cost recovery sharing scheme between state revenue and PSC contractor earnings. “However, there are several matters we need to resolve, including the cost recovery sharing between state revenue and contractor earnings. It will be concluded shortly,” Bahlil said.