Jakarta. The Indonesian government has agreed to extend ExxonMobil’s contract to operate the Cepu Block in Central Java until 2055, in exchange for a fresh investment commitment of $10 billion, Energy and Mineral Resources Minister Bahlil Lahadalia said recently.

The current operating license for the Cepu Block is set to expire in 2035. Under the new agreement, ExxonMobil will continue operations for an additional 20 years.

“We will extend it until 2055 with additional investment of approximately $10 billion,” Bahlil said.

He explained that the decision forms part of the implementation of the Reciprocal Trade Agreement signed between Indonesia and the United States in Washington on Feb. 19.

In addition to the investment pledge, ExxonMobil and the Indonesian government are negotiating a revised cost and revenue-sharing scheme for the Cepu Block, though Bahlil did not disclose further details.

“There are several matters that must be clarified, including cost and revenue-sharing schemes between the state and the contract holder. This will be finalized shortly,” he said.

The Cepu Block is one of the largest contributors to Indonesia’s oil output, alongside fields operated by state energy firm Pertamina. According to Bahlil, Cepu accounts for up to 30% of national oil production, equivalent to around 170,000 to 185,000 barrels per day.

As part of the broader trade deal, Indonesia has committed to importing $15 billion worth of US energy commodities, including $3.5 billion in liquefied petroleum gas, $4.5 billion in crude oil, and $7 billion in gasoline.

At the same time, Jakarta is seeking to curb fossil fuel imports, including plans to halt all imports of low-quality diesel starting this year as domestic production and distribution of palm oil-based biodiesel expands.