Indonesia agrees to extend Corridor natural gas block contract by 20 years

The Ministry of Energy and Mineral Resources has agreed to extend the PSC for the Corridor natural gas block with the ConocoPhillips Company, Repsol S.A. and PT Pertamina. The existing contract, which will expire in December 2023, has been extended by 20 years to 2043. The ConocoPhillips Company will operate the block until 2026, before initiating the transfer of operatorship to the state-owned PT Pertamina.

As per the new contract, the contractors will get a share of 53.5 per cent of the gas and 48.5 per cent of the oil produced from the block. The government aims to sign the PSC under a gross split scheme, following payments of financial obligations to the government. ConocoPhillips Company’s participating interest in the block will be cut to 46 per cent from the current 54 per cent, while PT Pertamina’s interest will increase to 30 per cent from the current 10 per cent. Repsol S.A. will hold a 24 per cent interest in the block. However, the shares will not change after ConocoPhillips Company transfers operatorship to PT Pertamina; however, the contractors will be obliged to offer a combined 10 per cent participating interest in the block to a municipally owned company.