Indonesia To Extend Exxonmobil Contract To 2055, Opens Ethanol Import Option

JAKARTA, Feb 21 (Bernama) -- Indonesia will extend its oil and gas cooperation with the United States (US)-based ExxonMobil until 2055, with an additional investment commitment of around US$10 billion.

Energy and Mineral Resources Minister Bahlil Lahadalia said several aspects of the contract extension still need to be finalised before a final agreement is signed.

“There are several matters we need to clear, including the sharing of cost recovery between state revenue and the income of Production Sharing Contract (PSC) contractors,” he said during a virtual press conference from Washington, according to ANTARA News Agency Friday night.

Bahlil said ExxonMobil, which has operated in Indonesia for more than 100 years, is the country’s largest oil lifting contributor after Pertamina, producing around 170,000 to 185,000 barrels per day.

In a related development, Bahlil said the government is also opening opportunities to import ethanol, including from the US, as part of efforts to develop cleaner energy.

“We will mandate the blending of gasoline with ethanol. The objective is to create new business opportunities in Indonesia,” he said.

He added that ethanol imports remain an option as long as domestic production is insufficient to meet national demand.

“Until our domestic production can meet national needs, the space for imports remains open,” he said, adding that import policy runs in parallel with efforts to boost domestic energy production.

Bahlil said the planned mandatory ethanol blending programme forms part of broader efforts to strengthen national energy security and sovereignty.

-- BERNAMA