Indonesia’ government has agreed to extend the production sharing contract for the Corridor oil and gas block in South Sumatra with ConocoPhillips, Spain’s Repsol SA and PT Pertamina, the energy and mineral resources (EMR) ministry announced on Monday (July 22).

The existing contract will expire on December 2023 and the ministry has agreed to extend the contract by 20 years to 2043. The signing of the decision to approve the extension and the form and provisions for the cooperation contract in the Corridor block by the EMR Minister Ignatius Jonan and the related business entity.

The government is aiming to sign the production sharing contract, which will be under a gross split scheme, within a month, following payments of financial obligations to the government, Jonan said.

Under the new agreement, ConocoPhillips’ participating interest in the block will be cut to 46% from 54% currently. Pertamina’s interest will increase to 30% from 10% and Repsol will have a 24% in the block, the ministry said.

The estimated investment value of implementing the first five-year work commitment is US$250 million and the signature bonus is US$250 million. The government advised the contractor to continue to increase exploration and production activities on the Corridor block.