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Indonesia signs 20-year production sharing contract for Corridor gas block

The Ministry of Energy and Mineral Resources of Indonesia has signed a 20-year production sharing contract (PSC) with ConocoPhillips, Repsol and national oil company Pertamina for the Corridor natural gas blocks, since the current contract - that was already signed with the same companies - will expire in the end of 2023.

Under the terms of the new PSC, companies paid a US$250m signature bonus and committed to invest US$250m to develop the block over the first 5 years of the extended contract period. In turn, they will receive 53.5% of the gas production and 48.5% of the oil production, according to the "gross split" scheme adopted in 2017. The share of ConocoPhillips will decline from 54% to 46% and that of Repsol from 36% to 24%, to the advantage of Pertamina, whose share will increase from 10% to 30% from 2023.

The Corridor block is located in south Sumatra and is one of the largest gas fields in Indonesia. It produced 833 mcf/d (23.6 mcm/d or 8.6 bcm.year) between January and September 2019, corresponding to 12% of the national gas production.